In the real business cycle model, average labor productivity is procyclical because, when total factor productivity goes down, labour input increases more than in proportion to the fall in output. labour input declines more than in proportion to the rise in output. labour input declines less than in proportion to the rise in output. labour input declines less than in proportion to the fall in output. labour input declines more than in proportion to the fall in output.

In the real business cycle model, average labor productivity is procyclical because, when total factor productivity goes down, labour input increases more than in proportion to the fall in output. labour input declines more than in proportion to the rise in output. labour input declines less than in proportion to the rise in output. labour input declines less than in proportion to the fall in output. labour input declines more than in proportion to the fall in output.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Which of the following changes would increase labor productivity? Group of answer choices Workers in Country Y work in smaller family businesses without large scale equipment. Workers in country X go through extensive technical training in most manufacturing sectors. Workers in country Z use older equipment and computers to reduce cost. Country W reduces the schooling and training required for engineers.
Assume an economy has a population of working age of 83 million and unemployment rate is 4%. Further, the average productivity of labour is 80,000 and the average mark-up in the economy (µ) is 5%. The wage-setting curve for this economy is given by real wage = 55,000 + 25, 000X, with X representing the employment rate. The labour market is in equilibrium. (a) Calculate the equilibrium real wage of the economy. (b) Calculate the employment rate of the economy. Calculate the number of employed workers in the economy. (d) s) Calculate the participation rate of the economy.
Why do we assume that changes to Total Factor Production are persistent? i know that its important and that it affects the outcome. is it because persistent means the changes are not temporary in the market and therefore doesnt try to readjust over time but rather it has long term affects.
Identify the following variables as procyclical, countercyclical, or acyclical: (1) consumption, (2) real wage, (3) employment, and (4) total factor productivity.
1) Ina diagram of the labour market A) a temporary adverse productivity shock causes the labour supply curve to shift to the left. B) labour supply is a negatively sloped curve. C) labour demand is a positively sloped curve D) the quantity of labour demanded equals the quantity of labour supplied at the equilibrium real wage. E) None of the above 2) Suppose the aggregate production function is given by the following: Y-AN. Given this information, we know that labor productivity is represented by which of the following? A) 1/A B) A C) IN D) N/Y E) None of the above
Consider the outcome of an economy in the long-run with N = 10000 potential workers who may be employed or unemployed. Suppose that the aggregate production function is where Y is real GDP, L is the number of employed people and A aggregate productivity. Assume that K = 1, the initial productivity level is A = 1 Y = AK L = AL", Further suppose that the job separation rate is s= 0.04 and the job finding rate is f = 0.75. Recall the firm's marginal product of labour (MPL) is given by A MPL = x L¹-a where & is the share of labour in the economy and equal to 0.66. On the demand-side, suppose that the consumption and investment functions are, respectively, C=C+ c(YT) = 40 +0.55(Y – T) I = Ī + i(r) = 180 - 1200r. where r is the real interest rate. Assume government purchases are G = To summarize, N = 10000, f = 0.75, Finally, suppose that monetary base is B = 1000, that reserve ratio is rr = 0.1 and the currency deposit ration is cr = 0.5. s = 0.04, G = 100, B Ī = 150, rr = 0.1, 100, and…
What is the effect of diminishing returns to labor on the slope of the aggregate production function (where output is measured on the vertical axis and employment is measured on the horizontal axis)? a. It implies that the slope of the curve decreases as the number of workers employed increases. b. It keeps the slope the same throughout. c. It implies that the slope of the curve becomes negative as the number of workers employed increases. d. It has nothing to do with the slope of the aggregate production function. e. It implies that the slope of the curve increases as the number of workers employed increases.
Consider an economy where the aggregate production function is given by F(K, L) = 4VKL. All markets are competitive. Suppose the supply of capital and labor are given by K = 4 and L = 7.Compute the equilibrium real wage. Please round your answer to two decimal places. Type your answer.
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
the ______ population = 200 million, the labor= 160 million, and employment= 140 million c) Starting from the situation in (a), what would happen to the labor force participation rate if 30 million people lost their jobs and all of them exited the labor force? d) Starting from the situation in (a), what would happen to the labor force participation rate if employment rose from 140 million to 150 million?
Sienna currently works 20 hours per week as a librarian, but is looking for a full time job. Sienna is considered to be (check all that apply) unemployed full time not in the labor force a discouraged worker part time for economic reasons part time for noneconomic reasons a marginally attached worker employed
The real business cycle theory believes the supply of labour is inelastic True False