Task 1 The salary curve is given by: W pe A. W (u, The price curve is given by: P = (1 + price surcharge) · marginal cost W A P = (1 +μ).. 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

Task 1 The salary curve is given by: W pe A. W (u, The price curve is given by: P = (1 + price surcharge) · marginal cost W A P = (1 +μ).. 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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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This multiple choice question from MACROECONOMICS course. just write for me the final answer.
Consider the labour market represented in the following graph: real wage W P equilibrium employment WS PS Employment rate Where WS represents the Wage Setting relationship, and PS represents the Price Setting relationship. Which of the following statements are INCORRECT? Changes in the marginal product of labour will change the equilibrium level of unemployment because it makes the wage setting (WS) curve shift. A non-labour related increase in cost of production, will shift the PS curve downwards. The PS curve is horizontal because changes in prices do not affect the rate employment in the economy. A positive demand shock that increases actual output will move the equilibrium employment to the right of the point E in the graph.
The deskilling of jobs is promoted by O the introduction of new products O the introduction of a detailed division of labor O the expansion of trade O the introduction of anti-union regulations D Question 4 Between 1997 and 2016, average carpenter state employment fell by half O fell by 20% due to the Great Recession was about the same O almost doubled
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If the labor market flow Pue is found to equal 0.32 for a particular month, this means that a) 32 percent of the total adult population flowed from unemployment to employment during the month. b) 32 percent of the total labor force flowed from unemployment to employment during the month. c) 32 percent of those who were initially unemployed became employed during the month. O d) 32 percent of those who were initially employed became unemployed during the month.
Question 73 of 80 If a firm finds that, at its current level of employment, VMP > W, it will A. be minimizing profits. B. be maximizing profits. C. decrease the amount of labor it hires. D. increase the amount of labor it hires. 1
) Suppose there are two inputs in the production function-labor and capitaland that these two inputs are perfect substitutes. Suppose that the price of capital is 750 GHC per machine per week and that the weekly salary of each . worker is 300 GHC . i) Draw the isocost line ii) With the aid of a graph, explain the effect of a wage decrease on flrm-level employment and output holding initial cost ouday constant.
4. Consider the Keynesian Efficiency Wage Model.
Based on our understanding of the labor market model, the new labor law in China which increases the protection of workers to be laid off would lead to Select one: a. an increase in the equilibrium real wage O b. an increase in the natural rate of unemployment O c.a reduction in the natural rate of unemployment O d. a reduction in the equilibrium real wage
Book: MacroeconomicSteinar, holden, osloCappelen damm academic,2016
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