Economics A-Level
Labour market dynamics
What Labour market dynamics means in Economics A-Level, as defined for AQA.
Definition of Labour market dynamics
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Reference: AQA
Workers demanding higher nominal wages when aggregate demand is stimulated, which shifts the short-run Phillips curve upwards and returns unemployment to the NAIRU at a higher inflation rate.
Topics that use Labour market dynamics
Related terms
- Cyclical unemployment
- Demand-side policies
- Economic growth
- Economic harmony
- Inflation expectations
- Inflationary pressures
- Long-run aggregate supply
- Long-run Phillips curve
Using Labour market dynamics in the exam
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