Use the figures below to answer the following question(s): P₁ a 0 X3 X₁ AS₁ X₂ Qp Real Output Graph A Profits to decrease P₂ P₁ P3 Product prices to decrease 0 X₂ ASLR Real Output Graph B AS₂ X₂ AS₁ In Graph A above, an increase in the price level from P₁ to P₂ will cause: AS 3 The nation's unemployment rate to be greater than the natural rate of unemployment The nation's unemployment rate to be less than the natural rate of unemployment

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.

The Suppose the world price of tobacco falls significantly. The demand for labor among tobacco-producing firms in Kentucky will demand for labor among cigarette manufacturing firms in Virginia, which use tobacco as an input, will The temporary unemployment that results from sectoral shifts such as the ones describes above is best categorized as unemployment. Suppose the government wants to reduce this type of unemployment. Which of the following policies would help achieve this goal? Check all that apply. Offering recipients of unemployment insurance benefits a cash bonus if they find a new job within a specified number of weeks Increasing the benefits offered to unemployed workers through the government's unemployment insurance program Establishing government-run employment agencies to connect unemployed workers to job vacancies

Question 23 Macroeconomic equilibrium occurs when Othere is no inflation. real GDP is equal to nominal GDP the aggregate quantity demanded is equal to the aggregate quantity supplied O the unemployment rate is zero

Image

Suppose the world price of cotton falls substantially. The demand for labor among cotton-producing firms in Texas will    . The demand for labor among textile-producing firms in South Carolina, for which cotton is an input, will    . The temporary unemployment resulting from such sectoral shifts in the economy is best described as    unemployment.

Typed plaza and Asap thanks