How does the price of the final good for which labor is used to produce affect the demand for labor?
What will be an ideal response?
The demand for labor varies directly with the price of the final good that it is used to produce. If there is an increase in the price of the final good, the value of the marginal product of labor increases, which will cause firms to demand more workers. Hence, the demand curve for workers shifts to the right. Conversely, if there is a decrease in the price of the final good, the value of the marginal product of labor decreases and this causes firms to demand fewer workers, and the demand curve for workers shifts to the left.
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Spending longstanding & can be also a tax policy/decreasing; increasing
What will be an ideal response?
The graph above might represent the ________
A) response to an increase in the fraction of the population engaged in research and development B) response to a rise in the productiveness of research and development C) response to an increase in the total population D) response to a rise in the saving rate