Macroeconomics (Fourth Edition)
Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
Question
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Chapter 15, Problem 3E

(a)

To determine

Impact of TFP (total factor productivity) on labor demand schedule.

(b)

To determine

Impact of TFP (total factor productivity) on labor supply schedule.

(c)

To determine

Impact of TFP shock on employment and real wages.

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Students have asked these similar questions
the August unemployment figures for Australia were surprisingly better than predicted (did not continue to increase) given the collapse that occurred in the economy due to COVID closures. (a) Use the static AD-AS model to explain the short run impact of the COVID closures on the economy and discuss the implications this has for unemployment.  b) Comment on the limitations of the static AD-AS model in analysing the situation under COVID.
There is an on‐going debate on how unemployment benefits affect the unemployment rate. In the context of the Mortensen‐Pissarides model, unemployment benefits are represented by the variable b. Explain carefully how an increase in b affects each equilibrium condition (Beveridge curve, vacancy supply condition, and wage setting curve.) How is the steady‐state unemployment rate impacted by an increase in b? Use the simulation tool here, https://www.briancjenkins.com/dmp‐model/simulation‐tool.html, to check your answer.
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