C2 ... PPF1 12 (0,0) Leisure, I PPF3 Based on your observations from A and B, how do you think that the aggregate labor supply curve vould look like in this economy? Choose from the following 3 diagrams:
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- You are given the PPF below for Macroville. The economy currently operates at point A with an unemployment rate of 8%. How would you measure the cost to the economy of this level of unemployment? Provide details in your explanation and use the appropriate economic terminology.5. Bill is a college student. Every week his parents give him an allowance of $100. If he work at McDonald, he can earn $15 per hour. Every day he spends 16 hours for sleep and study. For the rest time, he must decide how to allocate it between working and social life (leisure). Currently he chooses work 20 hours per week. a ) Draw a consumption-leisure diagram, carefully illustrating Bill's current labour supply decision. Mak sure to calculate all relevant values and label all axes b ) Suppose the wage rate falls to $12. Assuming the income effect dominates the substitution effect, in your graph his new labour supply decision. Please specify the substitution effect and the income effec in your graphWhich of the following events will shift the laborsupply curve to the right?a. More dads leave the work force to spend timeraising children.b. Great new video games are introduced, enhancingthe value of leisure.c. Relaxed immigration laws allow more workers tocome in from abroad.d. Government benefits for the retired are increased
- Only typed answer over the last 50 years, in the united states the labor force participation rate for women ________, the labor force participation rate for men ________, and the over−all labor force participation rate ________. a.decreased; increased; increas b.increased; did not change; increas c.did not change; increased; increas d.increased; decreased; increas e.increased; decreased; did not change edededednot changein the pc/classical macro labor market, why issupply of labor upward sloping? what is the story behind more individuals work if they are paid a higher W? Please answer correct explain plz Don't answer by pen peparFor Catherine to be considered out of the labor force, she can be: temporarily absent from her job due to sick leave. working 15 hours per week without pay. a full-time student and is not looking for jobs. self-employed.
- Suppose the economy is in a recession and the unemployment rate is exceptionally high. Show that a technological breakthrough that greatly increases labor productivity could help reduce the unemployment rate without hurting the standard of living of the average worker. (Use diagram and analysis, you only need to use the labor market here.)Show graphically and explain how a rise in labor productivity affects the real wage rate.Part B Consider an economy that experiences an outflow of working age people and a decline in aggregatelabour supply as a result. Suppose the aggregate labour demand curve is not affected by this change.(a) Explain, with the aid of the labour-market-equilibrium diagram, how this will affect the equilibriumreal wage and the full-employment level of employment. (b) Explain, with the aid of three separate IS-LM-FE diagrams, how this will affect real output, realinterest rate and the general price level in three steps:(i) before the general price level adjusts;(ii) when the general price level is adjusting;(iii) after the price adjustment process is completed.Is the general price level increasing or decreasing during the price adjustment process? Explain theintuition of your answer with reference to the AD-AS framework.
- Using "increase" or "decrease", complete this statement:" According to the output effect, a decrease in the wage rate will ______ production costs, so the price of final goods will ______. The quantity of final goods produced will ________, so the demand for labor will ___________."The ABS reported that in September 2007, a cycle peak, the working-age population was 16,808,200, the labour force was 10,979,300, and employment was 10,514,600. Calculate for that quarter the labour force participation rate and the unemployment rate. a) A slowdown in China’s economic growth due to the sub-prime crisis in the US. b) Union wage settlements push the wage rate up. c) An increase in consumer confidence.Give typing answer with explanation and conclusion Production function Y=8*K^.33*L^.66 Now what if there is skill biased technological change that makes capital more productive relative to labor such that alpha or the exponent on K rises to .5 and the exponent on L falls to .5 By what % does real wage change? By what % does R/P change?
