Principles of Economics, 7th Edition (MindTap Course List)
7th Edition
ISBN: 9781285165875
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Chapter 18, Problem 5QCMC
To determine
Growth of real wage.
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Around 1973, the U.S. economy experienced asignificant _________ in productivity growth, coupledwith a _________ in the growth of real wages.a. pickup; pickupb. pickup; slowdownc. slowdown; pickupd. slowdown; slowdown
Question Two
Using a diagram explain what happens to the long-run demand curve for labor if the price of labour increases? Decompose the changes into scale and substitution effects.
Suppose that the adult population is 210million, and there are 130 million who are employed and 5 million who are unemployed. Calculate the unemployment rate and the labor force participation rate.
Define unemployment and explain factors that determine the rate of unemployment given that labor market is in the steady state.
Why is the short-run demand curve for labor downward sloping? Why does a profit-maximizing firm hire workers up to the point where the wage equals the value of marginal product?
Explain why in the medium run an increase in the
price of oil will cause an increase in the
unemployment rate.
Chapter 18 Solutions
Principles of Economics, 7th Edition (MindTap Course List)
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- “When computers were first introduced in production, what affect do you think they had on labor productivity? Explain and illustrate this effect on the long-run equilibrium levels of output and the price level.”arrow_forwardFigure 15-12 Price level LRAS, LRAS₂ B * $10 104 100 Thr AD₁ 11 11.3 SRAS, SRAS₂ AD₂ Real GDP Refer to Figure 15-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point Barrow_forward7. Historically, technology has: A. increased and the demand for labor has decreased as output has increased. B. increased and the demand for labor has increased as output has increased. C. decreased and the demand for labor has decreased as output has decreased. D. decreased and the demand for labor has increased as output has decreasedarrow_forward
- Completed 0 out of 30 Resources Submit Question 24 of 30 What is the elasticity of demand for labor? A measure of how upset your boss is when his employees ask for more money. O A measure of how responsive firms' supply of labor is to changes in the wage rate. A measure of the extra revenue earned by the firm resulting from hiring one more unit of labor. A measure of how much firms' profits are affected by changes to wages. A measure of how sensitive the amount of labor firms will hire is to changes in the wage rate. A measure of the sensitivity of wage rates to the unemployment rate. Suppose you discover that your boss has a demand for labor that is very elastic. What does this imply in terms of y requesting a raise? Your boss may likely eliminate some positions (fire some people) if wages rise. Your boss will maintain the exact same labor force (not fire or hire anyone) if wages rise. Your boss is a flexible and undertanding person, so he or she is likely to accomodate any request…arrow_forward6. What Causes Changes in Unemployment over the Short Run and Long Run?arrow_forwardThe Long Run Aggregrate Supply Curve best represent which of the following? a. Wages are sticky in the long run b. The Natural Rate of Unemployment (full employment) c. Cyclical Unemployment d. rGDP (output)arrow_forward
- What is technology? Part 2 Technology is Part 3 A. the additional output a firm produces as a result of hiring one more input. B. a change in the ability of the firm to produce a given level of output with a given quantity of inputs. C. the rate of economic depreciation. D. the processes a firm uses to turn inputs into outputs of goods and services. E. the highest-valued alternative that must be given up to engage in an activity.arrow_forwardThe labor demand curve slopes downward because a. firms wish to hire fewer workers as the wage rate increases b. firms wish to hire more workers as the wage rate increases c. firms wish to supply fewer workers as the wage rate increases d. households wish to hire fewer workers as the wage rate decreasesarrow_forwardGive an example of a concept learned in this course that you think may be associated with weak macroeconomic performance . the list of concepts we learned so far is below Explain why this is case. Use real-world examples and explanations. lists of concepts learned so far Describe economics and the economic way of thinking. Identify the components of an economic theory. Define scarcity. Explain opportunity cost and the rationale for choice. Define a market and competitive markets. Describe demand and the concept of demand, individual demand and the demand curve. Explain a change in demand versus a change in quantity demanded. Define supply and the concept of supply. Describe a change in supply versus change in quantity supplied. Illustrate and explain and illustrate how markets reach equilibrium price and quantity.arrow_forward
- A trading partner for many countries has a stock market crash and goes into recession. The United States has a 6% inflation rate, higher than most of its trading partners.A new technology makes workers more productive.A breakthrough allows solar energy to be produced inexpensively. Categories Shifts AD curve Drag and drop here Shifts AS curve Drag and drop here Shifts AD and AS Drag and drop here Doesn't shift AD or AS Drag and drop here.arrow_forwardNeed answer . Absuletly upvote !!arrow_forward1. Analyze the effects of an increase in both wage rates and labor productivity on the costs of the firm.arrow_forward
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