Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
It decreases demand for labor in all sectors.
B
It increases demand for labor in complementary sectors.
C
It has no effect on labor demand.
D
It only affects demand in non-complementary sectors.
Understanding the Answer
Let's break down why this is correct
Answer
When macroeconomic activity increases, it usually means that businesses are producing more goods and services to meet higher consumer demand. This rise leads companies to hire more workers to keep up with the increased production. In sectors with complementary labor inputs, such as manufacturing and logistics, more workers in one area can create a need for more workers in another. For example, if a car factory is producing more cars, it will also need more workers in the supply chain, like those transporting parts and assembling vehicles. As a result, the overall demand for labor increases in interconnected sectors, creating more job opportunities.
Detailed Explanation
When the economy grows, businesses need more workers. Other options are incorrect because Some might think that all sectors lose workers when the economy grows; It's a common mistake to think that growth has no impact on jobs.
Key Concepts
complementarity in labor
macroeconomic influences.
Topic
Understanding Labor Demand Shifts
Difficulty
medium level question
Cognitive Level
understand
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