Contemporary Labor Economics
11th Edition
ISBN: 9781259290602
Author: Campbell R. McConnell, Stanley L. Brue, David Macpherson
Publisher: McGraw-Hill Education
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Question
Chapter 3, Problem 1QS
To determine
The major components of the
Expert Solution & Answer
Explanation of Solution
The aggregate labor supply is a
- Population size: The size of the total population and the size of working population determine the labor supply in a country.
- Quality of labor: The quality of labor is an important component of the labor supply. It includes skills, positive attitude, hard work, leadership quality, and so forth.
- Real wage: Changes in real wage would have more impact on the attitude of workers in the long run. An increase in real wage would encourage workers to work more.
- Duration of working days: It includes the length of working hours in a week.
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