Some companies raise their workers pay by giving raises, but others prefer to give one-time bonuses instead. Think abouttwo steel mills facing a big two-year drop in steel demand: In one steel mill, workers have received pay raises every year for five years. In the second mill, most of the pay increases have occured through big bonuses at the end of each year. Which steel mill will probably keep more jobs during the two-year downturn? Why? Would you draw a perfectly vertical curve, a curve with a positive slope, or a curve with a negative slope?

Q5. This question focuses on the price setting and wage setting relations. (a) Assume that the price setting equation is given by P = following values of the markup, u, calculate the real wage: p = 0.1, 0.2, 0.3, and 0.4. (1+) W. For each of the What happens to the real wage as u increases? (b) Suppose that all markets are perfectly competitive. What is the value of u when perfect competition exists? What will be the real wage paid by firms when all markets are perfectly competitive? == (c) Suppose that the markup of goods prices over marginal cost is 10% and the wage setting equation is W = P(1 u); where u is the unemployment rate. What is the real wage, as determined by the price-setting equation? What is the natural rate of unemployment? (d) Suppose that the markup of prices over costs increases to 20%. What happens to the natural rate of unemployment? Explain the logic behind your answer.

Y-KILI. Suppose there is perfect competition. The real rental rate of capital is rx-1 and the real wage is 4. The firm wants to minimise its costs subject to producing at least one unit of the good, Le. It was to minimise its costs subject to What is the value of the ratio Y2L Enter a number using fractions or decimals in your answer. Decimals should be to at least 2 decimal places. 4-C What is the value of L? Enter a number using fractions or decimals in your answer. Decimals should be to at least 2 decimal places. What is the minimum cost for the firm? Enter a number using fractions or decimals in your answer. Decimals should be to at least 2 decimal places.

In the United States, labor earnings are about what percent of total income? O a. 75 percent O b. 70 percent O c. 67 percent O d. 50 percent Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.