Non-market-clearing theories assume that wages do not instantly to clear the market. Arecessionary gap can persist and result in unemploymentthat is

Q: We don't typically see wages fall in response to an economic downturn because: Multiple Choice…

A: By "sticky" costs, we mean the perception that a few dealers set costs in ostensible terms that…

Q: "The more sluggish wage and price adjustment is, the more variable output and price level are when…

A: "The more sluggish wage and price adjustment is, the more variable output and price level are when…

Q: Structural Unemployment occurs when wage is kept above equilibrium. There are three reasons for…

A: Structural unemployment occurs when wages do not exist. Adjust in equilibrium so that the number of…

Q: According to the Bathtub labor market model, řunemployment rate is now t 12%, th separation rate…

A: Given: Unemployment rate=12% separation rate(s)=1.5% Job finding rate(f)=15% To find: Number of…

Q: Describe the differences between frictional and structural unemployment

A: Unemployment refers to the condition where a worker wants to work and capable of doing work but…

Q: Which of the following statements is false? Sticky wage theories presume that the main cause of…

A: Statement 1 is true- Wages can be stifled for a variety of reasons, including labor unions and…

Q: One policy based source of structural unemployment is     retraining programs     economic…

A: Unemployment refers to a situation when a person wants to work but he can not find a paid job.

Q: Cieck A ion 14 of 23 Sort the pros and the cons of Employment Insurance (EI). Pro Con Answer Bank…

A: The correct answer is given in the second step.

Q: An increase in the minimum wage will cause an increase in frictional unemployment. O True False

A: The frictional unemployment occurs when the spend time voluntarily in search of the new jobs which…

Q: Please provide examples, it is crucial. If inflation raises unexpectedly by 5% indicate for each…

A:

Q: The natural rate of unemployment O does not change over time. O cannot be changed via public policy.…

A: Note:  We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Define with example: Structural unemployment, Frictional unemployment and cyclical unemployment

A: Unemployment is an economic problem that occurs when people who are able and willing to work fail to…

Q: An economy currently has a separation rate s = 5% and a job-finding rate f = 74%. Suppose the…

A: The labor market is the market in which the labor demand is equal to the labor supply curve. The…

Q: Equilibrium unemployment (natural rate of unemployment) is made up of O cyclical unemployment O…

A: Unemployment is a term that refers to people who are employable and seeking a job but can not find a…

Q: when companies elect to pay wages that are above the going market wage rate, this is likely to cause…

A: Structural employment is defined when there is a mismatch of employment between what the market need…

Q: Leo runs a bicycle repair shop. He recently examined information on wage and employment levelsand…

A: The real wages are refers to the nominal wage rates which have been adjusted for inflation

Q: If, over two periods (quarters), the unemployment rate had reduced from 6.5 to 5.5 per cent and the…

A: Unemployment: It includes all those individuals who are willing and able to work at the prevailing…

Q: Which of the following statements is false? （only 1 correct answer） A. Unions can have sufficient…

A: A competitive market refers to one in which no one customer or producer has significant market…

Q: Please only awnser this question I must give uou the previous question below it for context Please…

A: From all the option given in the question, in the context of the labor market, for any mark up which…

Q: define hysteresis on the labor market and give one reason why it may arise in a recession

A: Hysteresis emerge when one disturbance act on or affects the trajectory of the economy.

Q: A country has a population of 160,000 citizens aged 16 or older. Because of a highly sophisticated…

A: Given information Labor demand function Qd=102-W Labor supply function Qs=5W Working…

Q: The extent of_______________________ will depend on how easy it is for workers to learnabout…

A: Cyclical Unemployment is a kind of situation which happens when there is jobless due to economic…

Q: How can seasonal unemployment be alleviated? Should it be alleviated? Why or why not?

A: Seasonal unemployment means a situation when individuals are not having jobs(unemployed) at…

Q: using a supply and demand diagram how to illustate and explain  cost push inflation caused by a…

A: Inflation refers to an increase in the general price level in an economy. It means that the price of…

Q: Suppose that the demand curve of the labor market is p=105-q. where p is the price of labor (wage)…

A: The demand for labor tells us about the number of workers that a firm desires to hire in producing…

Q: Is zero unemployment desirable? explain

A: >Unemployment can be categorized in three different ways: 1. Frictional Unemployment: This type…

Q: Consider a simple model of labor market fluctuations. A(n) in the job separation rate s equilibrium…

A: The labor force is the sum of employed and unemployed. The labor market is determined by the labor…

Q: a. Briefly explain how an effective minimum wage causes a structural unemployment.  b. With the aid…

A: a. Structural unemployment is the kind of involuntary unemployment which is caused by the…

Q: Because people move into and out of the labor force so often, statistics on unemployment are…

A: Unemployment people are those who are willing and able to work but are unable to find a suitable…

Q: The wage gap is usually defined as the real wage divided by labor productivity. O True O False

A: In an economy, productivity of labor explains the ability of the workers to generate output.

Q: An economy currently has a separation rate 3 = 5% and a job-finding rate f = 74%. Suppose the…

A: The unemployment rate is the ratio of the number of unemployed people to the labor force. The…

Q: Which of the following statements is false? Unions can have sufficient bargaining power to push…

A: The labor demand curve is negatively sloped because it indicates the inverse relationship between…

Q: om

A: The job keeper payment policy in turn helps businesses being affected by Covid 19 in order to render…

Q: Which of the following, if any, is an exception to employment at will: Group of answer choices None…

A: The employment relationship is a relationship between two parties, generally based on a paid…

Q: Discuss the view of neoclassical theory of minimum wage legislation on employmen

A: The minimum wage legislation would have mixed effects on the employment depending on the minimum…

Q: how is frictional, structural, cyclical unemployment and natural rate of unemployment. and why some…

A: Total unemployment in an economy can be classified into 3 types namely, Structural Unemployment…

Q: analyse the impact that the increasing number of social grants may have on the unemployment rate

A: Social grants are set up to help improve ways of life in the public arena and are given to…

Q: The sticky-wage theory suggests an unexpectedly high price level lowers _____ causing firms to hire…

A: Introduction In sticky wage theory, nominal wages are sticky in the short run. When there is…

Q: Assume that the stock market experiences a massive rally, leading to a significant increase in…

A:

Q: Discuss Keynesian view of minimum wage legislation on employment.

A: Minimum wage is the lowest wage that has to give for the labor. Generally, minimum wage is greater…

Q: What type of wage rigidity is most likely to affect the unemployment rates of the following types of…

A: Wage rigidity can be explained as when wages don’t adjust to make the demand and the supply equal,…

Q: During the global pandemic, the data show an unprecedented surge in initial claims. Initial claims…

A: A two-sided search model involves both the supply and demand sides of the labor market. That is, it…

Q: QUESTION 3 che Heckscher-Ohlin model with trade the wage in a countr True False

A: The Heckscher-Ohlin model is an economic theory that states countries should export what they can…

Q: Analyze and explain the effect of the minimum wage law on the unemployment rate. Explain your answer…

A: A minimum wage, when binding, is imposed above market equilibrium wage rate. At higher wage rate,…

Q: (9.3) This exercise considers a labor market described by the following wage-setting (WS) and…

A: Wage Setting relation: W = Pe  (1- u0.5) z Price Setting relation : P = (1+m ) *W At the natural…

Q: The real business cycle theory believes the supply of labour is inelastic True False

A: Supply is considered inelastic in real business cycle theory.

Q: Analyze and explain the effect of the minimum wage law on the unemployment rate. Explain your answer…

A: Minimum wage act: - it ensures the minimum amount of wage for workers. Unemployment: - unemployment…