Question

A recession recently hit Country Y. The shift in demand for labor due to this recession can be seen from D0 to D1. What level will wages be at in the short run after this shift

Answer 1

Answer:

Follows are the solution to this question:

Explanation:

please find the complete question in the attached find.

In only at intersections of its quantity demanded with employment becomes calculated its wage rate.

Whenever the demand between $D_0\ to \ D_1$ shifts, therefore, the balance of salaries is equal.

The changes only to new crossing points are equal to 30. Thus, after this move, the salary levels will be 30.