An increase in labour participation rate will lead to a. A higher equilibrium wage but lower equilibrium employment b. A lower equilibrium wage and lower equilibrium employment c. A higher equilibrium wage and higher equilibrium employment d. A lower equilibrium wage but a higher equilibrium employment
An increase in labour participation rate will lead to a. A higher equilibrium wage but lower equilibrium employment b. A lower equilibrium wage and lower equilibrium employment c. A higher equilibrium wage and higher equilibrium employment d. A lower equilibrium wage but a higher equilibrium employment
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter4: Labor And Financial Markets
Section: Chapter Questions
Problem 29P: Predict how each of the following events will raise or lower the equilibrium wage and quantity of...
Related questions
Question
An increase in labour participation rate will lead to
a. A higher equilibrium wage but lower equilibrium employment
b. A lower equilibrium wage and lower equilibrium employment
c. A higher equilibrium wage and higher equilibrium employment
d. A lower equilibrium wage but a higher equilibrium employment
Expert Solution
Step 1
Labor force participation rate is the percentage of adult population who is either employed or unemployed.
Increase in labor force participation rate means more people are in the labor force.
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