.) Output in Rumantily is produced using capital and labor. There is initially a fixed amount of capital (K0), but the amount of labor may be varied in accordance with labor market conditions. What will happen to real wages and employment in Rumantily if aliens drop off enough capital to effectively double the amount of capital available to workers?       Increase, increase       Increase, decrease       Uncertain, increase       Increase, uncertain

Would you expect the natural rate of unemployment to remain the same within one country over the long run of several decades?

Explain how the natural rate of unemployment may be higher in low-income countries.

Assess whether the following would be counted as unemployed in the Current Employment Statistics survey. A husband willingly stays home with children while his wife works. A manufacturing worker whose factory just closed down. A college student doing an unpaid summer internship. A retiree. Someone who has been out of work for two years but keeps looking for a job. Someone who has been out of work for two months but isnt looking for a job. Someone who hates her present job and is actively looking for another one. Someone who decides to take a part time job because she could not find a full time position.

Does it make sense that wages would be sticky downwards but not upwards? Why or why not?

What term describes the remaining level of unemployment that occurs even when the economy is healthy?

Would the following events usually lead to capital deepening? Why or why not? A weak economy in which businesses become reluctant to make long-term investments in physical capital. A rise in international trade. A trend in which many more adults participate in continuing education courses through their employers and at colleges and universities.

When would you expect cyclical unemployment to be rising? Falling?

Suppose the economy is operating at potential GDP when It experiences an increase in export demand. How might the economy increase production of exports to meet this demand, given that the economy is already at full employment?

How do you convert a series of nominal economic data over time to real terms?