(solution) Assume that the war in Iraq increased the desired size of the U.S. military, and assume that…

(solution) Assume that the war in Iraq increased the desired size of the U.S. military, and assume that…

Assume that the war in Iraq increased the desired size of the U.S. military, and assume that potential recruits are reduced by the prospect of facing dangerous, unpleasant wartime conditions. First, analyze how the war affects the supply curve and the demand curve for military personnel. Second, use your analysis to predict how the war will affect the wages and the employment level of military personnel.