Q3. Which answer below best describes the essence of the Philipps' Curve relationship?As labour markets tighten up and workers are in greater demand, wage growthstarts to accelerate.As labour markets tighten up, wage growth starts to decelerate.As labour markets start to experience excess supply (of workers), the price ofworkers (wages) starts to rise.As labour begin experiencing excess supply (of workers), prices of consumergoods begin rising.As unemployment rises, cannabis sales rise.

The objective of the question is to identify the correct description of the Phillips Curve…

Answered: Q3. Which answer below best describes…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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What reasons do Arnold and Bowie give for doubting Maitland’s claim that improving employee wages will inevitably lead to more unemployment and poverty?
Calculate MPL & MRP to determine how many employees the firm should hire. 1) Calculate MPL and the MRP of the business. We can assume that price = $3 and that the business must pay a wage to its employees of $20 per day. # of employees: Output MPL MRP 1 90 120 132 4 140 5 142 6 143 A*Based on these numbers, how many employees should this business use? Explain your answer. B*Show what the graph would like this for this firm if we have lines for wage and MRP. Show where they would cross and the optimal number of employees used also C*Explain what you think would happen if demand went up for the product and now price goes up to $4. LO
The labour market in an economy is characterised by the following equations: Wage setting: Price setting: W p² W Р = 0.9-0.5u = 1 1+µ -A In which W is nominal wages, pe and P are expected nominal prices and nominal prices, respectively, u is level of unemployment. µ is the price mark-up and λ is the marginal product of labour. Assume μ = 0.3 and λ = 1.1 Considering this information, which of the following statements are CORRECT: Improvement in working conditions will have no effects in the equilibrium level of unemployment in this economy. If this economy's actual output is below its potential output, there is pressure for real wages to decrease below 0.85 (i.e., W<0.85). If price marginal product of labour decreases to 1, the equilibrium real wage in this economy will decrease. A positive demand shock will change the equilibrium variables in this economy.
Consider Special City that manufactures light fixtures that are sold around the world. Draw their base case Labor Market graph. Now assume there is a national shortage of glass that Special City manufacturers use to create their light fixtures. Show what would be the effect on your Labor Market graph. Lastly, assume the manufacturers change their manufacturing process to use less glass but inadvertently create a very noticeable increase in the smog levels that makes it hard to breathe. Show another variation to reflect the change in your labor market graph, be sure to indicate the effects of the changes on for each of these market changes or combine the graphs, just be sure the changes and new equilibria are legible:
The college graduates of 2000 could hardly have asked for better luck. The unemployment rate dropped to 4.1 % in May 2000- roughly, the lowest level in a generation- and employers were literally scrambling for new hires. Starting salaries rose, many graduating seniors had numerous job offers, and some firms even offered $10,000- $20,000 bonuses to students who signed the dotted line. Three years later, the job market for the Class of 2003 was rather different. U.S. economic growth had slowed to a crawl, and then to a halt. Companies that had stocked up on recent college grads in the tighter labour markets of 1998-2000 found themselves with more than they knew what to do with in 2002 and 2003. They were not eager to hire more. Bonuses and other “perks” disappeared; job offers became scarcer. With the unemployment rate around 6% in May and June of 2003, the job market was far from the worst ever. But it was nothing like the glory days of 2000. YOU ARE REQUIRED TO: (i) Briefly explain…
Suppose that education is the only factor that affects productivity and that an additional year of education raises wages by 2%. Suppose in 2011 gender wage gap was 13%, and the average man had 15 years of education while the average women had 14 years of schooling. a) Using the wage gap decomposition technique, calculate how much of the 13% wage differential is due to discrimination? b) Now suppose in 2021 the gender wage gap is 10%, but the average woman’s education level is increased to 17 year and the average man’s education increases to16 years. (Assume that the return to education stays same at 2%), Was there a decrease or an increase in wage discrimination in the decade? Why?
Full answer to question a and b

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