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Answer to Question #73090 in Economics for Ashley
Question #73090
In some cases, employment subsidies are provided to firms in order to encourage employment by these firms. What would the impact of these kind of subsidies be on the labor market?
Expert's answer
If employment subsidies are provided to firms in order to encourage employment by these firms, then the quantity of labor supplied will exceed the quantity of labor demanded, so there will be a surplus of labor.
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