Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A decrease in macroeconomic activity generally reduces the demand for both skilled and unskilled labor.
B
An increase in technology adoption increases the demand for unskilled labor due to greater complementarity.
C
A rise in consumer demand can lead to higher demand for labor if the labor types are complementary in production.
D
Labor supply shifts have no impact on the demand for labor in a macroeconomic context.
Understanding the Answer
Let's break down why this is correct
Answer
Macroeconomic influences can significantly affect labor demand by changing the overall economic environment in which businesses operate. For example, during an economic boom, companies may need more workers to meet increased consumer demand, which raises the demand for labor. Additionally, the complementarity between different types of labor supply means that if one type of worker becomes more available, it can increase the demand for other types of labor that work alongside them. For instance, if there is a rise in skilled technicians in a factory, the demand for unskilled laborers might also increase since both types of workers are needed for production to run smoothly. Overall, understanding these relationships helps us see how shifts in the economy can lead to changes in labor demand.
Detailed Explanation
When people buy more goods, companies need more workers. Other options are incorrect because This suggests that less economic activity always means less need for workers; This implies that technology helps unskilled workers more.
Key Concepts
labor supply
complementarity in labor
macroeconomic influences.
Topic
Understanding Labor Demand Shifts
Difficulty
hard level question
Cognitive Level
understand
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