ECON 1BB3 Lecture : Chapter 10

• School: McMaster University
• Department: Economics
• Course: ECON 1BB3
• Professor: Bridget O' Shaughnessy

Document Summary

These numbers are consistent if the labor force grew by 278,000 people. As the population grows, the labor force constantly grows so it is likely that the increase in the number of employed will exceed the decrease in the number of unemployed. The minimum wage initially is set at wm. L1, the number of workers supplied is l2 and the number unemployed is l2 - l1. When the minimum wage rises to w"m, the number of workers demanded falls to. L3, the number of workers supplied rises to l4, and the number of workers unemployed rises to l4 - l3.