Question: Consider the labor force structure in Figure 8-9. Assume the net hiring rate for a firm is proportional to the gap between the desired and

Consider the labor force structure in Figure 8-9. Assume the net hiring rate for a firm is proportional to the gap between the desired and actual workforce. Without using a computer or calculator, sketch the behavior of the workforce and net hiring rate for the following situations. 1. The desired workforce increases from 1000 to 2000 at week 4, then steps down to 1500 at week 12 (Figure 8-13). Assume the workforce adjustment time AT = 4 weeks and the actual workforce initially equals the desired workforce. 2. Repeat step 1 for the case where the labor force adjustment time AT = 2 weeks. 3. Sketch the workforce and net hiring rate for the case where the desired workforce increases linearly beginning in week 4 (Figure 8- 14). Assume the labor force adjustment time AT = 4 weeks. Does the workforce eventually equal the desired workforce? Why or why not

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