XECO 212 Week 3 Check Point

XECO 212 Week 3 Check Point - Because of the crash in the...

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XECO 212 Week 3 Check Point: Historical Example of Labor Supply and Demand During the great depression a catastrophic fall in the stock market caused many individuals to lose every penny they had. Companies folded and many of the work force was left without jobs. During this troubled time many people were just trying to scrape together enough money to buy food. Some individuals were taking lesser paying jobs than what they were qualified for in order to provide for their family. Because of the economic issues the supply of labor was very high and the demand very low. In a situation where the supply is greater than the demand there are negative effects on the labor force. Wages are forced lower and positions are scarce. The high labor supply allowed many companies to be extremely picky and gave them the luxury to under pay for better qualified labor.
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Unformatted text preview: Because of the crash in the stock market companies were forced to cut jobs and save as much money where they could. With such a drastic change in the economic well being of the country many companies went belly up and many jobs were cut forcing a substantial spike in unemployed workers. While some businesses made it through the initial fallout in the economy they could justify lower wages in order to stay in business. Most of the people still employed dealt with many negative changes just to keep their jobs. Lower wages would be one of the first changes followed by many company benefits. Because the great depression lasted many years the supply of labor stayed high which helped contribute to a slow economy. The effects of the high supply of labor resulted in the demand to stay low for many years....
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This note was uploaded on 08/21/2011 for the course BUS 101 taught by Professor Doe during the Spring '10 term at University of Phoenix.

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