Which of the following will not shift the supply curve for labor to the right? Multiple Choice A decrease in marginal income tax rates An increase in the wage rate An increase in the dollar cost of leisure A decrease in government unemployment benefits
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A rightward shift indicates an increase in the quantity of labor supplied at each wage level, which can occur due to factors that make work more attractive or feasible. Show more…
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Oluwadamilola A.
'Suppose the government passes law that significantly increases the minimum wage The policy will cause the natural rate of unemployment to which will: Not affect the long-run aggregate supply curve Shift the long-run aggregate supply curve to the right Shift the long-run aggregate supply curve to the left In the following table, determine how each event affects the position of the long-run aggregate supply (LRAS) curve: Direction of LRAS Curve Shift The government allows more immigration of working-age adults who find work: A scientific breakthrough significantly increases food production per acre of farmland_ A government-sponsored training program increases the skill level of the workforce.'
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The article states "Some economists, Republican lawmakers and business owners say enhanced federal unemployment benefits are contributing to the labor shortage, because many workers receive more in government aid than they would get on the job." Use the supply and demand framework to show how an extra $300 per month in unemployment benefits changes the labor market equilibrium. Specifically, (i) would this cause the demand curve for labor to change? If you believe the demand curve would change, would the demand curve shift to the right or to the left? (ii) would this cause the supply curve for labor to change? If you believe the supply curve would change, would the supply curve shift to the right or to the left? Briefly explain your answers. c. Under what circumstances would a labor shortage develop?
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