Problem
In the 1970s, a large number of new workers entered the U.S. economy from two main sources. The baby boom generation grew to adulthood and the proportion of women working outside the home increased substantially. If wages adjust, what effect will these factors have on the equilibrium level of wages and quantity of labor? If wages do not adjust, how does your answer change? In which case will unemployment exist? Draw a diagram to explain your answer. What is the effect of the increased labor supply on the product market? Illustrate your answer diagrammatically.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.