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The following figure shows the labor demand curve, LD1, and labor supply curve, LS1, in a market. A ...

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The following figure shows the labor demand curve, LD1, and labor supply curve, LS1, in a market. A ...

The following figure shows the labor demand curve, LD1, and labor supply curve, LS1, in a market. A month later, the labor demand curve shifts to LD2.

Refer to the figure above. If there is downward wage rigidity in the market, what will be the unemployment in the market after the demand curve shifts to LD2?

▸ 5 units of labor

▸ 20 units of labor

▸ 15 units of labor

▸ 10 units of labor

Textbook

Macroeconomics

Edition: 3^rd

Authors: Acemoglu, Laibson, List

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