The Black Death: In the middle of the fourteenth century, an epidemic known as the Black Death killed about a third of Europe’s population, about 34 mil-lion people. While this was an enormous tragedy, the macroeconomic con-sequences might surprise you: over the next century, wages are estimated to have been higher than before the Black Death.(a) Use the production model to explain why wages might have been higher.(b) Can you attach a number to your explanation? In the model, by how muchwould wages rise if a third of the population died from disease?
The Black Death: In the middle of the fourteenth century, an epidemic known as the Black Death killed about a third of Europe’s population, about 34 mil-lion people. While this was an enormous tragedy, the macroeconomic con-sequences might surprise you: over the next century, wages are estimated to have been higher than before the Black Death.(a) Use the production model to explain why wages might have been higher.(b) Can you attach a number to your explanation? In the model, by how muchwould wages rise if a third of the population died from disease?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Black Death: In the middle of the fourteenth century, an epidemic known
as the Black Death killed about a third of Europe’s population, about 34 mil-
lion people. While this was an enormous tragedy, the
sequences might surprise you: over the next century, wages are estimated to
have been higher than before the Black Death.
(a) Use the production model to explain why wages might have been higher.
(b) Can you attach a number to your explanation? In the model, by how much
would wages rise if a third of the population died from disease?
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