If the labor supply curve shifts to the left,the equilibrium real wage ________ and the equilibrium level of employment ________.
A)rises,rises
B)rises,falls
C)falls,rises
D)falls,falls

Question

Quizplus · Accepted Answer

If the labor supply curve shifts to the left, it means there are fewer workers available for employment. This will result in an increase in the equilibrium real wage, as there are now fewer workers to fill available jobs. However, the decrease in available workers will also decrease the equilibrium level of employment, as businesses will be unable to hire as many workers at the higher wage rate.

If the Labor Supply Curve Shifts to the Left,the Equilibrium