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A recession recently hit Country Z. The shift in demand for labor, from D0 to D1, due to this recession can be seen in the graph below. What is the wage rate in the short-run after the shift in demand? Assume wages are sticky in the short-run..

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A recession recently hit Country Z. The shift in demand for labor, from D0 to D1, due to this recession can be seen in the graph below. What is the wage rate in the short-run after the shift in demand? Assume wages are sticky in the short-run.

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  • 1. A recession recently hit Country Z. The shift in demand for labor, from D0 to D1, due to this recession can be seen in the graph below. What is the wage rate in the short-run after the shift in demand? Assume wages are sticky in the short-run.