Suppose that a country experiences a reduction in productivity – that is, an adverse shock to the production function. A) What happens to the labor demand curve? Show the change on the graph. B) How would this change in productivity affect the unemployment rate if the labor market is always in equilibrium? Explain your answer referring to the graph.
Q: Afirm has an industrial plant that emits pollutants into a town’s lake. The plant’s marginal…
A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Which of the following best explains why Canada and Mexico trade far more with the United States…
A: Canada and Mexico trade far extra with the united states than any other country or trade union by…
Q: A company earns $18 annually. You discount its future profits by 2% a year due to your impatience…
A: Discount rate is the interest rate used to calculate the present value of future cash flows. It…
Q: One of the ways the government can cushion the unemployed worker is to pay him/her unemployment…
A: Governments provide cash help known as unemployment benefits to people who have lost their jobs and…
Q: Which of the following is considered in the consumption component of the United States' GDP?
A: GDP is the sum of consumption, investment, government purchases, and net export. i.e., GDP =…
Q: If the price charged for a candy bar is p(x) cents, then x X 10. p(x)=151- a. Find an expression for…
A: Total revenue refers to price multiplied by quantity. Marginal refers to change in total revenue…
Q: he characteristics of the mixed economy in an economy
A: Introduction ; Based on the ownership of the resources, the economy can be divided into command,…
Q: Read “YOU’RE THE ECONOMIST: Cigarette Smoking Price Elasticity of Demand”. According to the previous…
A: Elasticity of demand is a measure of how responsive the quantity demanded of a good or service is to…
Q: How does the model of monopolistic competition studied in lectures differ from perfect competition?…
A: Monopolistic competition is a type of market structure in which many firms compete by selling…
Q: Calculate, interpret and try to explain where applicable in each question, why the elasticities of…
A: Most customers are price sensitive across most markets, and it is anticipated that if a good or…
Q: No written solution by hand You are hosting a workshop for your staff on communication and…
A: Retail business refers to the sale of goods or merchandise to individual consumers, typically in…
Q: What is Stagflation?? Describe
A: Inflation frequently remains inseparable with financial development as consumers are willing and…
Q: Which of the following statements is true? a) None of the other possible answers are true. b)…
A: In order to assess the relationship between a dependent variable and one or more independent…
Q: demand and the elasticity of supply values are respectively Ed* = -6.6 and Es* = 4.1 Suppose the…
A: The price elasticity of demand or supply computes the proportionate change in quantity demanded or…
Q: Find all (if any) pure strategy Nash Equilibrium for the following game:
A: Dominant strategy is the strategy that yields higher payoff and doesn't change with the change in…
Q: Suppose that a country's annual growth rates were 5, 3, 4 , -1 , -2 , 2 , 3 , 4, 6, and 3 in yearly…
A: Annual growth rate refers to the rate at which a certain quantity, such as a company's revenue or an…
Q: The graph shows the market for wool. Draw a shape that represents the consumer surplus from wool.…
A: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a…
Q: In 2020, the Central Bank of Faunaland increased the money supply growth by 8%, whereas the Central…
A: An exchange rate peg is a monetary policy by which a country's monetary authority or central bank…
Q: If there were 30 firms in this market, the short-run equilibrium price of ruthenium would be $ would…
A: The competitive market would result in the equilibrium when the price would be equal to the marginal…
Q: The set-up remains deterministic (i.e., no uncertainty) and has two periods. c is period 1…
A: (a) To solve for the optimal savings as a function of r and w, we can use the Lagrangian method: L =…
Q: In the initial Cournot oligopoly equilibrium, both firms have constant marginal costs, m, and no…
A: A market structure known as an oligopoly is defined by a limited number of dominant major companies…
Q: Harold and Mavone plan to purchase furniture, appliances, some heirloom artifacts, as well as new…
A: Internal Rate of Return (IRR) is a financial metric used to measure the profitability of an…
Q: Suppose the initial change in spending is $12 billion. The indirect effects of that change cause a…
A: Given information: The initial change in spending is $12 billion. This initial change in spending…
Q: Suppose the economy is in a recession. The output gap is $1 trillion. The AE function reads AE = 0.5…
A: Aggregate demand is the sum of Consumption, Investment, government spending and net export. MPC is…
Q: Below is the production possibilities frontier for Poland. It shows that Poland is able to produce…
A: PPF is the graph that shows the different production possibilities of two commodities when resources…
Q: Download Q4 and generate a model of the annual maintenance expenses based on the age of the bug. If…
A: We can construct a regression model to analyze the relationship between the age of the bus and…
Q: Consider the graph below. What is the slope of the supply curve? 8 7 Price ($) 5W32 L 1 A 0246 8 10…
A: In this case, we have to discuss the slope of the supply curve. Supply curve is one type of curve…
Q: Dahlia gives a presentation on the Industrial Revolution and focuses on its impact on air and water…
A: Dahlia examines the effects of human activities on the natural world and how these effects can have…
Q: Suppose that the typical Canadian spends 70 percent of their income. There is an income tax rate is…
A: MPC is the marginal propensity to consume. Tax multiplier is calculated using the following formula…
Q: Suppose in a perfectly competitive industry that the market supply and demand forces combine to…
A: A perfectly competitive industry is a market form in which there exist many buyers and sellers, all…
Q: At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker…
A: When businesses or individuals work together to manipulate a market or price for their personal…
Q: The graph above shows an Engel curve for health (H) in (a) and an Engel curve for medical care (m)…
A: In this case, we have to discuss Engel curve. Engel curve is indicating the relationship between…
Q: You need a car. You decide to purchase a new car for $12,000 and sell it in one year. If you don't…
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Suppose that in a year Indonesia can produce either 50 million tonnes of petrol or 20 million tonnes…
A: Opportunity cost and comparative advantage: The value of alternative opportunities foregone and…
Q: 5. Consider a game with the following payoff table for player 1: Strategy Player 1 1 2 3 1 3 -4 1…
A: Given the pay-off matrix: Player 2 1 2 3 Player 1 1 3 -3 -2 2 -4 -2 -1 3 1…
Q: The following table presents 2015 data from the national-income accounts of the United States.…
A: The market value of all the final goods and services generated by an economy over a certain time…
Q: This is a graph showing the Federal Funds Rate and the prime bank loan rate since the beginning of…
A: 1. The relationship between the federal funds rate and the prime loan rates is as follows: The…
Q: Probably the most important source of capital is human capital. For example, most medical doctors…
A: Human Capital: Human capital is an intangible asset or quality not involved in the balance sheet of…
Q: Which of the following could be the price elasticity of demand for a good for which a decrease in…
A: Price elasticity is the percentage change in quantity demanded due to change in price.
Q: Help me asap The wellbeing of an economy directly depend on its government actions. True…
A: A society's or a person's total prosperity and standard of living are typically referred to as their…
Q: XI. S. advance in development technology that owered a developer's costs change the market supply…
A: An increase in development technology that reduced a developer's costs could cause a shift in the…
Q: Apparently, the increasing popularity of scooters is also leading to an increase in scooter-related…
A: The increasing popularity of scooters is also leading to an increase in scooter-related injuries.…
Q: Use the black point (plus symbol) to indicate the equilibrium price and quantity of VR headsets.…
A: Prices are viewed by economists as balancing supply and demand. Because prices change when the…
Q: max U(x1, x2) = 6 min{5x1, 3x2} €1,22 subject to pix1 + P2x2 ≤ 1, P1 = 10, P2 = 18, I = 240.
A: Utility is a subjective concept. It is defined as the satisfaction that a consumer receives when the…
Q: Use the graph below to answer the question. Capital goods B C Point B Point D Point E Point A CO…
A: A graph that shows the most effective way to produce a pair of goods is called the production…
Q: QUESTION 2 Considering the following scenario. In years 0, 2, 4, 6, and 8, you deposit $1000 in your…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: 5. Understanding marginal and average tax rates Consider the imaginary nation of Leguminis, whose…
A: Citizens only consume BEETS Price of beets = $1 each Plan X: Consumption upto 1000 beets taxed at…
Q: Bob needs to decide whether to go home or go to the library. At home, his menu is H : = {a,b,c}…
A: The multi-self model is a decision-making model that takes into account the different selves that a…
Q: (d) Find the pure-strategy Nash equilibria of this game. (e) What do you think will happen?
A: Pure Strategy Nash Equilibrium is when the chosen set of actions by all players has the…
Q: In response to an overheating economy, the federal government engages in _____ fiscal policy, which…
A: Overheating refers to the inability of the productive facilities to meet the aggregate demand.
Suppose that a country experiences a reduction in productivity – that is, an adverse shock to the production function.
A) What happens to the labor demand curve? Show the change on the graph.
B) How would this change in productivity affect the
Explain your answer referring to the graph.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
- While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the tie between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part of the labor force and are therefore most effected by changes in the unemployment rate. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graphSuppose the unemployment rate in Economia is 8%, and there are 2 million unemployed persons in the economy. What is the size of the labor force? Write your answer in millions of people. Answer: NexThe rate of job separations in the economy is 0.013 (1.3 percent) and rate of job finding is 0.25 (25 percent). a) If the economy has 500 workers in the labor force, calculate the unemployment rate and the number of unemployed in the steady state. b) If the rate of job separations is 1 percent, what happens to the unemployment rate and the number of unemployed in the steady state? c) If labor force suddenly increases by 20 workers who are seeking work (and the rate of job separations remains at 1 percent), what is the immediate change in the unemployment rate? What is the new steady-state unemployment rate? Draw a graph on how unemployment rate evolves in time.
- In the beginning of a recovery after a recession, employment begins to rise and the news media report these data on job growth. a) would such a report have an impact on the labor force ? b) how would it effect the unemployment rate?Suppose that all other factors affecting the labor market remain constant. Graphically illustrate and explain what is the effect of an increase in unemployment benefits on the equilibrium levels of real wage and unemployment. (Hint: In your graph, put the real wage on the vertical axis, and the level of unemployment on the horizontal axis. Use wage-setting relation and price-setting relation to analyze the question.) Upload your results by taking a photo / scan of your answer.Assume that the economy is in a recession and demand for labor is falling. Assume that wages are sticky. Draw a supply and demand graph that represents the labor market. Draw a graph that depicts what has happened to our demand and supply curves in the labor market, including our new equilibrium price and quantity of labor. Will the market experience an increase or a decrease in unemployment? Make sure you clearly label your graph, all of its components, and any curve shifts are clearly marked with the beginning and ending curves (you can use 0 and 1 or 1 and 2 to designate the first and the second curves).
- Economists use labor-market data to evaluate how well an economy is using its most valuable resource—its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Indicate what happens to the unemployment rate and the employment–population ratio in each of the following scenarios. Scenario Effect On... Unemployment Rate Employment–Population Ratio An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs. After an unsuccessful search, some laid-off workers quit looking for new jobs. Numerous students graduate from college and immediately begin new jobs. Advances in health care prolong the lives of many retirees.This question explores the calculation of the unemployment rate. You will be provided some imperfect employment data for four different countries and asked to identify the unemployment rate. Task 1: The population of Asartaland is 95. Of these 95 individuals, 75 are in the labor force and 65 are employed. What is the unemployment rate in Asartaland? Task 2: The population of Millsville is 130. Of these 130 individuals, 90 are in the labor force and 20 are unemployed. What is the unemployment rate in Millsville?Does it make sense that the definition of macroeconomic equilibrium allows the existence of involuntary unemployment? Would you not expect that, in such a case, wages would fall, which would lead to an increase in the demand for labor and hence the elimination of the involuntary unemployment?
- During a recession, couldn't firms reduce their labor costs by the same, or possibly more, if they laid off fewer workers while cutting wages? Why did few firms use this approach?What is the relationship between unemployment and the price level in the short run?Economists use labor-market data to evaluate how well an economy is using its most valuable resource— its people. Two closely watched statistics are the unemployment rate and the employment–population ratio (calculated as the percentage of the adult population that is employed). Explain what happens to each of these in the following scenarios. In your opinion, which statistic is the more meaningful gauge of how well the economy is doing? Situations unemployment rate employment–population ratio More meaningful one a. An auto company goes bankrupt and lays off its workers, who immediately start looking for new jobs b. After an unsuccessful search, some of the laid-off workers quit looking for new jobs. c. Numerous students graduate from college but cannot find work. d. Numerous students graduate from college and immediately begin new jobs. e. A stock market boom induces newly enriched 60-year-old workers to take early retirement.…