In each of the following scenarios, state whether the labor supply curve, labor demand curve or neither of the two shifts. If there is a shift, is the shift to the left or to the right? Illustrate your answer with a figure and show what happens to the full-employment level of employment following the shifts, if any. Label the axes and curves clearly.

(a) Real money supply increases

(b) A large number of working-age immigrants enter the country.

(c) The expected future wage declines and the stock market crashes.

(d) Fewer teenagers work while in school than before.

(e) Energy supplies become depleted.

Answer rating: 100% (QA)

a When real money supply increases the demand curve shifts to the right This is because in a country... View the full answer