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The United States is currently enjoying its lowest unemployment rate in recent memory. Is this a...


The United States is currently enjoying its lowest unemployment rate in recent memory. Is this a consequence of a change in labor demand or labor supply? Explain your answer thoroughly

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Answer #1

I think this is a consequence of a change in labor demand or labor supply. The quantity of labor employed depends on the equilibrium point of the labor demand and labor supply curve. With the steady economic recovery after the 2008 financial crisis and economic growth has resulted in a rightward shift in the labor demand curve. The rightward shift in labor demand curve has results in higher equilibrium employment rate. So, unemployment rate has fallen because of a change in demand and supply of labor.

answered by: ANURANJAN SARSAM
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