Which of the following statements about labor demand dynamics are true? (Select all that apply)

Labor demand dynamics refer to how the need for workers changes based on various factors in the economy. One key idea is that when the economy is doing well and businesses are growing, they often need more employees, which increases labor demand. Conversely, during a recession or economic downturn, companies may reduce their workforce, leading to lower labor demand. For example, if a new technology makes production easier, a factory might need fewer workers, even if the demand for its products remains high. Understanding these dynamics helps us see how shifts in the economy affect job opportunities and wages.