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- a. What is the theorized relationship between the unemployment rate and the minimum wage in the static model of the labour market? b. How should the unemployment rate respond to a constant minimum wage in the static model of the labour market?Q.3 Discuss how the wages are inter-related to the price policy?A government passes a family-friendly law that no companies can have evening, nighttime, or weekend hours, so that everyone can be home with their families during these times. Analyze the effect of this law using a demand and supply diagram for the labor market: first assuming that wages are flexible, and then assuming that wages are sticky downward.
- 1)Plot the following markets on a graph: Labor market: using 5 laborers and $5.00 for wage as point A (equilibrium). AD/AS graph: using 19.1 trillion for RGDP and 1.9% for inflation as point A (equilibrium). How will our AD/AS graph look like when Congress implements an income tax hike in the labor market?2. (a) Derive and carefully explain the wage- and price-setting model.Please I need a short summary for this video: https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/national-income-and-price-determinations/long-run-self-adjustment-ap/v/long-run-self-adjustment-ap-macroeconomics-khan-academy
- David Ricardo and Karl Marx both believed that wages will always go back to the subsistence level . They, however, differed as to what leads to this result. Explain the difference in their analysis.The minimum wage hike will mean a spike in unemployment: Study saysBy Jane Stevenson, Toronto Sun, September 19, 2017The Canadian Ontario government plans to set a minimum wage at $15 an hour. Currently, the median wage for low-skilled workers is $11.40. According to a study released Tuesday by the free enterprise Fraser Institute, the imposition of a minimum wage above current wages would lead to more unemployment for low-skilled workers. (A) (i) Below, complete the market for low-skill labor correctly labeling both axes and assuming the demand for labor has some elasticity; (ii) by the supply curve and demand curves, state who are the demanders and who are the suppliers; and (iii) from information in the article, set out in the market the current equilibrium “price” and depict the equilibrium quantity for low-skill labor. (B) (i) Depict in the market above in (A) the establishment of a $15/hour minimum wage by the Canadian Ontario government, and (ii) set out in the market the new…Explain the concept of buffer stock as a tool of price floor!
- Part (a):Suppose that the demand for the Dates and supply of the Dates in Ramadan both are declined byequal amount over some period of time. What you can conclude with this information? Explainand graphically show the effect on equilibrium price and equilibrium quantity.Part (b):Why is money not considered to be a capital resource in economics and why is entrepreneurialability considered to be a part of economic resource, distinct from labor? Please suggest two mostimportant function of entrepreneurs, you think is must?The minimum wage hike will mean a spike in unemployment: Study saysBy Jane Stevenson, Toronto Sun, September 19, 2017The Canadian Ontario government plans to set a minimum wage at $15 an hour. Currently, the median wage for low-skilled workers is $11.40. According to a study released Tuesday by the free enterprise Fraser Institute, the imposition of a minimum wage above current wages would lead to more unemployment for low-skilled workers. (D) (i) Below, complete the market for low-skill labor correctly labeling both axes and assuming demand for low-skill labor is perfectly inelastic; (ii) from information in the article, set out in the market the current equilibrium “price” and depict the equilibrium quantity for low-skill labor. (E) (i) Depict in the market above in (D) the establishment of a $15/hour minimum wage by the Canadian Ontario government, and (ii) set out in the market the new equilibrium “price” and the new equilibrium quantity for low-skill labor. (F) Is the graph…Are people worse off when the price level rises as fast as their income? Why do people often feel worse off in such circumstances.