which LOS discussed this concept? I guess more than one LOS Thank you in advance for your help.
LOS 21 b
the intersection of labor supply & demand different factors affect those, like the work-leisure tradeoff for supply or labor productivity for demand
is it influenced by unemployment and inflation expectations? How?
inflation affects the nominal wage rate, real wage rate should be unchanged if inflation is forecasted accurately
As wage rates increase (inflation increase) companies will lay off people due to higher costs -> Unemployment will increase Remember Inflation and unemployment have an inverse relationship (philips curve)
employment rather
you had it right the first time
nirjraina Wrote: ------------------------------------------------------- > you had it right the first time someone needs a refresher on econ here
econ is my worst. i tend to talk myself out of the right answer.