A major demographic change that has been affecting the U.S. is the wave of retirements among aging baby boomers (those born between 1946 and 1964). Combined with the relative decline in the number of young people entering the labor force, the retirement of many boomers will cause the labor force to grow more slowly and age.  Use the AD-AS model (along with a labor market graph) to show and explain how this will affect Y, N, W/P, and P over time.

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Asked May 5, 2019
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A major demographic change that has been affecting the U.S. is the wave of retirements among aging baby boomers (those born between 1946 and 1964). Combined with the relative decline in the number of young people entering the labor force, the retirement of many boomers will cause the labor force to grow more slowly and age.  Use the AD-AS model (along with a labor market graph) to show and explain how this will affect Y, N, W/P, and P over time.

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Labor Market: This is the market where labor and employees interact with each other and th...

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