Suppose labor demand increases in one region relative to another equalized region, discuss how the mobility of labor (migration) affects the predicted response of the nominal and real wage rates in both regions to the relative shift in labor demand (a graph is not needed here). Be sure to discuss the spatial equilibrium result
Suppose labor demand increases in one region relative to another equalized region, discuss how the mobility of labor (migration) affects the predicted response of the nominal and real wage rates in both regions to the relative shift in labor demand (a graph is not needed here). Be sure to discuss the spatial equilibrium result
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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- Suppose labor
demand increases in one region relative to another equalized region, discuss how the mobility of labor (migration) affects the predicted response of the nominal and real wage rates in both regions to the relative shift in labor demand (a graph is not needed here). Be sure to discuss the spatial equilibrium result.
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