An economic downturn has caused the labor demand curve to shift from Do to D₁. What is the new quantity of labor demanded and wage rate in the short run? Assume wages are sticky in the short-run. Wage (S) $40 E $35 130 125 120 SHE 201 400 100 Quantity of Labor D

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An economic downturn has caused the labor demand curve to shift from Do to D₁. What is the new quantity of labor
demanded and wage rate in the short run? Assume wages are sticky in the short-run.
Wage (S)
540
$35
130
125
120
SHE
y
400 100
Quantity of Labor
S
LI
Transcribed Image Text:An economic downturn has caused the labor demand curve to shift from Do to D₁. What is the new quantity of labor demanded and wage rate in the short run? Assume wages are sticky in the short-run. Wage (S) 540 $35 130 125 120 SHE y 400 100 Quantity of Labor S LI
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