Question

emplayment
panel c showed real wage rate and
labour market
with demand and supply
of labour. So the wage rate deformined
Lin the economy is wllo at which supply
of labour is more than demand for labour,
Therefore no Nt is the level of unemploy
ment in the economy. Even when the
wage jetes become flexible in thewenucard
direction full employment can not be achieved
because due to increase in real incommoney
supply there is no change in rate of
interest due to which agg demand cannot
be created to have more employment
opportunities.
21 Reafect inelasticity of Investment function.
If investment does not change with
the rate of interest then it is said
to be in elastic investment clove will
likeitt
&
be​

Answer 1

Answer:

If the wage rate increases, employers will want to hire fewer employees. The quantity of labor demanded will decrease, and there will be a movement upward along the demand curve. If the wages and salaries decrease, employers are more likely to hire a greater number of workers.