In the economic recovery of 2003–2004, job growth in Canada was much faster than job growth in the United States.

Please answer the following questions:

(a) Generally speaking, how does economic growth affect the demand curve for labor?

(b) Assume that growth does not affect the labor supply curve in either country, and suppose that the faster job growth in Canada was accompanied by slower (but positive) wage growth there than in the United States. What would this fact tell us about the reasons for the relatively faster job growth in Canada?