is created when the wage is higher than the market-clearing rate, this Choose the words which complete this statement: " is associated with wages." a. Natural; nominal; sticky b. Equilibrium; real; variable c. Structural; real; sticky d. Disequilibrium; real; sticky

is created when the wage is higher than the market-clearing rate, this Choose the words which complete this statement: " is associated with wages." a. Natural; nominal; sticky b. Equilibrium; real; variable c. Structural; real; sticky d. Disequilibrium; real; sticky

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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As the price level falls, real wage ____________and people choose to work ___________. a. rises; less b. rises; more c. falls; more d. falls; less
Homework (Ch 11) Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 10 2 20 1. Calculators 50 50 54 75 Large coffees 200 200 1 Energy drinks 100 200 4 Textbooks 10 100 1,000 120 150 Total cost 1,470 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by Between 2018 and 2019, the CSPI increased by 15…
16. Suppose that the government imposes a minimum wage of $7. Then, the size of labor force will be people, the number of people employed will be. , and the number of people unemployed will be. a. labor force = 50, employment = 30, unemployment = 20 b. labor force = 50, employment = 50, unemployment = 0 c. labor force = 70, employment = 30, unemployment = 40 d. labor force 70, employment = 50, unemployment = 20
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Define the real wage as the nominal wage, w, divided by the price level P. Nominal wages grew by 10%, and inflation was 5%. What is the approximate change in real wages? a. 3% b. -3% c. -5% d. 5%
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Task 1 The salary curve is given by: W A° •W (u, ре The price curve is given by: P = (1+ price surcharge) · marginal cost w P = (1+µ) · A a) Explain how unemployment (u) and expected price level (P ^ e) affect nominal wages and expected real wages. Give an interpretation of the variable z^ w? b) Draw both the price and wage curve in a diagram where real wages (W/ P) are on the Y-axis and unemployment (u) is on the X-axis. Explain why the real wage in this model is not dependent on unemployment [Hint: Expected price is not the same as actual price. P^e + P] c) Take the Values in b) as a starting point and explain what we mean by equilibrium and equilibrium unemployment in price and wage setting. d) How will these cases affect the equilibrium in problem c? 1) Increased unemployment benefits 2) Increased productivity
4. Consider the Keynesian Efficiency Wage Model.
Give typing answer with explanation and conclusion
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Assume that the labour demand equation for a fictional country is L = 90 – 2(w), where w is the wage per hour worked. Also, assume that the labour supply equation for that country is Ls = 0.5(w). Instructions: Round your answers to the nearest whole number. a. The equilibrium wage is $ , and the equilibrium quantity of labour employed is workers. b. At the equilibrium wage, | people are unemployed. c. If the supply of workers increased, the number of unemployed would: O stay the same as long as the wage is free to quickly adjust. O decrease. O increase.