ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An increased number of workers will cause the supply curve to shift to the right. An increased number of workers can be due to several factors, such as immigration, increasing population, an aging population, and changing demographics.

Detailed explanation-2: -A rise in the money wage rate makes the aggregate supply curve shift inward, meaning that the quantity supplied at any price level declines. A fall in the money wage rate makes the aggregate supply curve shift outward, meaning that the quantity supplied at any price level increases.

Detailed explanation-3: -As, for example, the real wage rate rises, the opportunity cost of leisure increases. This tends to make workers supply more labour (the “substitution effect"). However, also as the real wage rate rises, workers earn a higher income for a given number of hours.

Detailed explanation-4: -For an industry, the supply of labour is elastic. Hence, if a given industry wants more labour, it can attract it from other industries by offering a higher wage. It can also work the existing labour force over-time. This in effect will mean an increase in supply.