Number of Workers Demanded 60 120,000,000 110,000,000 100,000,000 90,000,000 100 80,000,000 110 70,000,000 120 60,000,000 130 50,000,000 140 40,000,000 150 30,000,000 20,000,000 10,000,000 Real Wage 70 80 90 160 170 Labor Force Participation Rate 30% 35% 40% people will have jobs. 45% 50% 55% 60% 65% 70% 75% 80% 85% Ignore what happened in the previous question. The table above shows some pieces of information about the labor market condition in a country. It shows the number of workers demanded in the country at different levels of real wage. It also shows the labor force participation rates at those real wage levels. For example, if the real wage is 60, only 30% of the civilian population will participate in the labor force. If the real wage is 170, some 85% will participate in the labor force. The general price level in this country is P = 100. The civilian population in this country is 100 million persons. Assume that wages and prices are fully flexible upwards and downwards in the long run. Suppose that over time the participation rate of women in the labor force increased (as it did in the U.S. after 1960s). In particular assume that as a result of this event the overall labor force participation rate increased by 15 percent. Therefore, at the existing real wage people will want to work but only people will have jobs. However, in the long run, labor market equilibrium will be resorted, and the equilibrium real wage will equal At that real wage, people will want to work and Use our rounding rules: No comma separators and two decimal places for all numbers (even the number of people).
Number of Workers Demanded 60 120,000,000 110,000,000 100,000,000 90,000,000 100 80,000,000 110 70,000,000 120 60,000,000 130 50,000,000 140 40,000,000 150 30,000,000 20,000,000 10,000,000 Real Wage 70 80 90 160 170 Labor Force Participation Rate 30% 35% 40% people will have jobs. 45% 50% 55% 60% 65% 70% 75% 80% 85% Ignore what happened in the previous question. The table above shows some pieces of information about the labor market condition in a country. It shows the number of workers demanded in the country at different levels of real wage. It also shows the labor force participation rates at those real wage levels. For example, if the real wage is 60, only 30% of the civilian population will participate in the labor force. If the real wage is 170, some 85% will participate in the labor force. The general price level in this country is P = 100. The civilian population in this country is 100 million persons. Assume that wages and prices are fully flexible upwards and downwards in the long run. Suppose that over time the participation rate of women in the labor force increased (as it did in the U.S. after 1960s). In particular assume that as a result of this event the overall labor force participation rate increased by 15 percent. Therefore, at the existing real wage people will want to work but only people will have jobs. However, in the long run, labor market equilibrium will be resorted, and the equilibrium real wage will equal At that real wage, people will want to work and Use our rounding rules: No comma separators and two decimal places for all numbers (even the number of people).
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 28CTQ: Why do you mink the U.S. experience with inflation over the last 50 years has been so much milder...
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Transcribed Image Text:Real
Wage
60
70
80
90
Number of
Workers
Demanded
120,000,000
110,000,000
100,000,000
90,000,000
100 80,000,000
110
70,000,000
120 60,000,000
130
50,000,000
140 40,000,000
150
30,000,000
160
20,000,000
170
10,000,000
Labor Force
Participation Rate
people will have jobs.
30%
35%
40%
people will have jobs.
45%
50%
55%
60%
65%
70%
75%
80%
Ignore what happened in the previous question.
The table above shows some pieces of information about the labor market condition in a country. It
shows the number of workers demanded in the country at different levels of real wage. It also shows
the labor force participation rates at those real wage levels. For example, if the real wage is 60, only
30% of the civilian population will participate in the labor force. If the real wage is 170, some 85%
will participate in the labor force. The general price level in this country is P = 100. The civilian
population in this country is 100 million persons. Assume that wages and prices are fully flexible
upwards and downwards in the long run.
85%
Suppose that over time the participation rate of women in the labor force increased (as it did in the
U.S. after 1960s). In particular assume that as a result of this event the overall labor force
participation rate increased by 15 percent.
Therefore, at the existing real wage
people will want to work but only
However, in the long run, labor market equilibrium will be resorted, and the equilibrium real wage
. At that real wage,
will equal
people will want to work and
Use our rounding rules: No comma separators and two decimal places for all numbers (even the
number of people).
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