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Why does an advance in technology increase supply?
because labor's or capital's productivity increases and costs of production fall
What Best explains the effect of immigration in the labor market?
buy one get one free
Why is the short-run aggregate supply curve horizontal if?
The short-run aggregate supply curve is horizontal if the economy is operating below full capacity, meaning there are unused resources like labor and capital. This indicates that firms can increase production without raising prices, resulting in a flat supply curve.
What are the effects of migration on the labor force?
Immigration increases the supply of labor
Which way will an increase in labor cost shift the supply curve?
An increase in labor cost will decrease supply, so the supply curve will shift left.
Which explains why immigration can lead to be decrease in wages?
Immigration increases the supply of labor.
Why is the long run aggregate supply model curve vertical?
It is the ideal aggregate supply, where all the resources and labor are being used fully. Because of this, the supply can't have a horizontal aspect, because it would mean a possibility for an increase in GDP, which can't be sustained unless the whole equilibrium moves to adjust to a change in long-run AS. Production cannot increase, so only price can change, which is on the vertical axis, making the line vertical.
What would most likely cause ad decrease in the aggregate supply?
A decrease in aggregate supply can be caused by several factors, including an increase in production costs, such as wages or raw materials, which can reduce businesses' ability to produce goods. Additionally, supply chain disruptions, natural disasters, or government regulations that impose stricter operational standards can hinder production capabilities. Furthermore, a decline in the availability of key inputs, such as labor shortages or resource depletion, can also contribute to a decrease in aggregate supply.
How do wages effect on labor supply?
A higher wage will increase the quantity supplied of labor, however it will not affect the entire labor supply curve. As for individual industries, it depends on the specific labor elasticity. If the Supply is inelastic, a relatively large change in wage will yield a relatively small change in quantity supplied. However, if the labor supply is elastic, a relatively small wage increase will return a relatively large quantity increase.
What best explains why globalization has led to wage cuts in some jobs in the US?
Outsourcing increases the domestic supply of workers, driving down the price of labor.Outsourcing
What will cause the capital stock when it increases?
Increases in the stock of capital will cause which of the following?The demand of labor increases.The demand of labor decreases.Selected answer No change in the demand of labor.First increase then decrease the demand of labor
Why long run aggregate supply curve shifts?
The long-run aggregate supply (LRAS) curve shifts due to changes in factors that affect an economy's productive capacity. These factors include improvements in technology, increases in the labor force, changes in capital stock, and enhancements in productivity. For example, advancements in technology can lead to more efficient production processes, shifting the LRAS to the right. Conversely, natural disasters or significant declines in the labor force can shift the LRAS to the left, indicating a decrease in potential output.
