Question: Suppose that workers become concerned about the future and therefore wish to increase their hours of work relative to leisure. At the same time, there

Suppose that workers become concerned about the future and therefore wish to increase their hours of work relative to leisure. At the same time, there is an increase in the capital stock, making workers more productive.
a. Draw a graph of the labor market, showing the effect of these changes.
b. Can you predict the effect on equilibrium employment? On the real wage?

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