W/P Labor supply e) None of the above. MPL, Labor demand L The above graph is taken from chapter 2 in the slides. In the 1980s, because of the decline of the manufacturing industry in the US, Kaiser Steel closed down many of its plants, in particular its San Bernardino plant. As a result, a large number of workers moved from San Bernardino to LA. Given this information, and ignoring changes in capital and other variables, you would expect real wages to be a) lower both in LA and San Bernardino. b) higher both in LA and San Bernardino. c) lower in LA and higher in San Bernardino. d) higher in LA and lower in San Bernardino.
W/P Labor supply e) None of the above. MPL, Labor demand L The above graph is taken from chapter 2 in the slides. In the 1980s, because of the decline of the manufacturing industry in the US, Kaiser Steel closed down many of its plants, in particular its San Bernardino plant. As a result, a large number of workers moved from San Bernardino to LA. Given this information, and ignoring changes in capital and other variables, you would expect real wages to be a) lower both in LA and San Bernardino. b) higher both in LA and San Bernardino. c) lower in LA and higher in San Bernardino. d) higher in LA and lower in San Bernardino.
Chapter30: The Labor Market
Section: Chapter Questions
Problem 14E
Related questions
Question
A6
![W/P
Labor
supply
b) higher both in LA and San Bernardino.
The above graph is taken from chapter 2 in the slides. In the 1980s, because of the decline of
the manufacturing industry in the US, Kaiser Steel closed down many of its plants, in particular
its San Bernardino plant. As a result, a large number of workers moved from San Bernardino to
LA. Given this information, and ignoring changes in capital and other variables, you would
expect real wages to be
a) lower both in LA and San Bernardino.
c) lower in LA and higher in San Bernardino.
d) higher in LA and lower in San Bernardino.
e) None of the above.
MPL,
Labor
demand
L](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F88ca4c30-51fe-4a55-ab57-9e8751f53a24%2Fa5b34a38-ea10-40a9-b2eb-e1fab96ebac7%2F3gdbtvi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:W/P
Labor
supply
b) higher both in LA and San Bernardino.
The above graph is taken from chapter 2 in the slides. In the 1980s, because of the decline of
the manufacturing industry in the US, Kaiser Steel closed down many of its plants, in particular
its San Bernardino plant. As a result, a large number of workers moved from San Bernardino to
LA. Given this information, and ignoring changes in capital and other variables, you would
expect real wages to be
a) lower both in LA and San Bernardino.
c) lower in LA and higher in San Bernardino.
d) higher in LA and lower in San Bernardino.
e) None of the above.
MPL,
Labor
demand
L
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