The wage elasticity of labor supply can be calculated using the following approach: Group of answer choices The labor force participation rate / the inflation rate % change in wage / % change in quantity of labor supplied % change in quantity of labor supplied / % change in wage % change in quantity of labor supplied / the savings rate
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The wage elasticity of labor supply can be calculated using the following approach:
Group of answer choices
The labor force participation rate / the inflation rate
% change in wage / % change in quantity of labor supplied
% change in quantity of labor supplied / % change in wage
% change in quantity of labor supplied / the savings rate
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- Annual Rate of Inflation (%) 12 C3 C₂ C₁ 160 B4 B3 B₂ B₁ 567 8 9 Unemployment Rate (%) Refer to the above graph. The long-run relationship between the rate of inflation and the unemployment rate is represented by: A line connecting points B₁ and C₁ The zigzag line, B₁C₁B₂C₂B3C3B4 A line connecting points B₁B₂B3B4 A line connecting points C₁C₂C3The rate of job separations in the economy is 0.013 (1.3 percent) and rate of job finding is 0.25 (25 percent). a) If the economy has 500 workers in the labor force, calculate the unemployment rate and the number of unemployed in the steady state. b) If the rate of job separations is 1 percent, what happens to the unemployment rate and the number of unemployed in the steady state? c) If labor force suddenly increases by 20 workers who are seeking work (and the rate of job separations remains at 1 percent), what is the immediate change in the unemployment rate? What is the new steady-state unemployment rate? Draw a graph on how unemployment rate evolves in time.Now you see what the BLS economist do, except with a more complex basket of goods. Now try to construct an index and determine the inflation rate on your own. The table shows the prices of fruit purchased by the typical college student from 2001 to 2004. What is the amount spent each year on the “basket” of fruit with the quantities shown in column 2? (5 points) Items Qty. 2001 2002 2003 2004 Price Amount Spent Price Amount Spent Price Amount Spent Price Amount Spent Apples 10 $0.50 $0.75 $0.85 $0.88 Bananas 12 $0.20 $0.25 $0.25 $0.29 Grapes 2 $0.65 $0.70 $0.90 $0.95 Raspberries 1 $2.00 1.9 2.05 2.13 $2.13 Total Construct the price index for a “fruit basket” in each year using 2003 as the base year. (5 points) Compute the inflation rate…
- Which one of the following statements about the bargaining power of workers and the nominal wage is INCORRECT? (a) An increase in unemployment benefits may result in an increase in the nominal wage; (b) If workers expect prices to increase, they will bargain for a higher nominal wage; (c) The easier it is to replace a worker, the more bargaining power such workers have; (d) Given that labour is the only production factor used, an increase in the bargained nominal wage will not lead to an increase in the real wage.Refer to the figure below. Insurance and pensions 11.9% Item a. Entertainment b. Transportation c. Clothing Housing 32.8% Source: U.S. Bureau of Labor Statistics, Consumer Expenditure Survey (2018 date). Entertainment 5,3% Item Weight 0.053 0.159 0.03 Transportation 15.9% Health care 8.1% Use the item weights in the figure to determine the percentage change in the CPI that would result from a(n) a. 20 percent increase in entertainment prices. b. 8 percent decrease in transportation costs. c. doubling of clothing prices. (Note: Review the table titled "Computing Changes in the CPI" in your text for assistance.) Instructions: Enter your responses as a percentage rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Price Change 20% -8% 100% Food 12.9% Clothing 3.0% Impact on CPI (Inflation Effect) Miscellaneous 10.1%Which of the following describes the interest rate on an investment after calculating the impact of inflation?O NominalO RealO FinancialO Profit
- WAGE (Dollars per hour) 15 Labor Supply 12 0 200 400 600 Labor Demand 900 1000 QUANTITY (Thousands of workers) Graph Input Tool Labor Market Wage Rate (Dollars per hour) Labor Demanded (Thousands of workers) $11.1 260 Labor Supplied (Thousands of workers) 740 480 Surplus Labor (Thousands of workers) Labor Demand Shifters Tax Credit (Dollars per hour) ° ? Suppose the minimum wage in this economy is $11.10 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. If the wage is not allowed to fall below $11.10 per hour, the size of the unskilled labor force is workers are considered unemployed. The unemployment rate is defined as the percentage of unemployed workers in the labor force: Unemployment Rate = Unemployed Labor Force x 100 workers, and unskilled At a minimum wage of $11.10 per hour, the…UNEMPLOYMENT RATE, 2019 (percent) 40 36 32 28 24 20 16 12 4 27 Adult males 5.4 White Black 3.8 Hispanic b. were employed? Adult females 4.7 2.8 White Black 47 Hispanic 11.5 White Teenagers 20.7 Black 14.5 Hispanic 3.7 National average Instructions: Enter your responses as a whole number. In 2019, how many of the 14,000,000 adult Hispanic males who participated in the labor market a. were unemployed? c. would have been employed if they had the same unemployment rate as adult white males?If the wage is above the equilibrium wage because of a binding minimum wage, the result cyclical unemployment O structural unemployment O seasonal unemployment O frictional unemployment
- The Bureau of Labor Statistics reported the following data for 2010:Labor force: 153.7 millionEmployment: 139.1 millionWorking-age population: 237.9 millionCalculate the:a) Unemployment rate.b) Labor force participation rate.c) Employment-to-population ratio.d) Why might the unemployment rate underestimate the underutilization of labor resources?The table below shows unemployment and labor force statistics for an economy. Actual rate of unemployment 3%Natural rate of unemployment 4%Civilian, noninstitutional population age 16 and over 125 millionNumber of people employed full time 92 millionNumber of people employed part time 5 millionNumber of people unemployed 3 millionNumber of discouraged workers 2 million(a) Calculate the size of the labor force. Show your work. (b) Calculate the labor force participation rate. Show your work. (c) Given the state of the economy described in the table, is actual real output less than, greater than, or equal to potential real output? Explain. (d) Calculate what the cyclical unemployment rate would be if the actual rate of unemployment increased to 5 percent. Show your work. (e) Suppose discouraged workers reenter the labor force and find employment. Will the actual rate of unemployment increase, decrease, or stay the same?The average price of tuition and fees at private 4-year colleges and universities increased from $8,300 in 1991 to $23,000 in 2006. Calculate the relative change in price from 1991 to 2006 and compare it to the overall rate of inflation as measured by the Consumer Price Index. Average tuition and fees in private 4-year colleges and universities increased by ■%. (Round to the nearest integer as needed.) Average Annual Consumer Price Index (CPI) (1982- 1984=100) Year CPI Year CPI Year CPI 1976 56.9 1989 124.0 2001 177.1 1977 60.6 1990 130.7 2002 179.9 1978 65.2 1991 136.2 2003 184.0 1979 72.6 1992 140.3 2004 188.9 1980 82.4 1993 144.5 2005 1981 90.9 1994 148.2 2006 1982 96.5 1995 152.4 2007 1983 99.6 1996 156.9 1984 103.9 1997 160.5 2009 1985 107.6 1998 163.0 2010 109.6 1999 166.6 2011 1986 1987 113.6 2000 172.2 2012 1988 118.3 195.3 201.6 207.3 2008 215.3 214.5 218.1 224.9 229.6
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