Checkpoint Historical Example of Labor Supply and Demand Wk 3

Checkpoint Historical Example of Labor Supply and Demand Wk 3

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Unformatted text preview: Checkpoint: Historical Example of Labor Supply and Demand Week 3 During the time of the Great Depression demand for labor was through the roof, but the supply of jobs decreased. Before the Great Depression; the Law of Supply was the more the wages were for labor the more people wanted to work and the Law of Demand was the higher the pay the less employers wanted to hire employees. This was not the case during the Great Depression, the Law of Supply showed that the lower the wages went, the fewer the company had employees. However; during this time an employer’s response to lower pay was to hire even more workers, increasing the amount of employees they had and paying much lower wages. “Every market is governed by the Laws of Supply and Demand and can be illustrated in graphs to mark changes. The changes after the stock market crash in 1929 were so severe, however; that the economy did not have the time or quite possibly the ability to self-correct” (Classical Economist and the Great...
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This note was uploaded on 02/28/2012 for the course ECONOMICS XECO 212 taught by Professor Tsilis during the Spring '09 term at University of Phoenix.

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