Turn on thread page Beta
    • Thread Starter
    Offline

    0
    ReputationRep:
    To anyone who can help!

    Does an expansion in the workforce affect an economy's LRAS curve? I know that any change in factors of production (land, labor, entrepreunership, capital) can cause a shift but does an expansion in the workforce imply an increase in factor of production labor ?
    Offline

    2
    ReputationRep:
    An expansion in the workforce implies the quantity of labour has increased, so yes.
    Offline

    1
    ReputationRep:
    Yes, as himynameiswill said, increasing the workforce is increasing the supply of labour.

    If you think of it on the PPF diagram, it's going to cause a rightward shift as there are more resources which can be employed, which translates into a rightward shift of the LRAS.
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: May 9, 2015

1,335

students online now

800,000+

Exam discussions

Find your exam discussion here

Poll
Should predicted grades be removed from the uni application process

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.