Instructions: you need to show your work Consider the economy described in the Specific Factors Model: 1 1 1 Qa = LẠT and QM = LMK .(Thus, MPLA 2 MPLM =Ki .) 'A 2 "M Also, LA + LM = L Suppose the economy's labor force is L = 125, and the levels of the specific factors are T=K = 64. Suppose autarky relative prices are PM 1 PA 2 1. Autarky equilibrium L4= 2. Autarky equilibrium LM= 3. Autarky equilibrium Q4=. 4. Autarky equilibrium Qm=. Let the agricultural good A be the numeraire, that is, PA = 1 in all equilibria. 5. Autarky price of good M PM 6. Autarky equilibrium wage w=. 7. Autarky equilibrium rental rate of land R, 8. Autarky equilibrium rental rate of capital Rg =.

Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation RateLabor Force Participation Rate  =  =         According to this formula, what is the labor force participation rate of this economy of six people? 40%   50%   80%   100%     Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment RateUnemployment Rate  =  =         According to this formula, what is the unemployment rate of this economy of six people? 40%   50%   80%   100%

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.

How is the natural rate of unemployment Illustrated in an AD/AS model?

Economists expect that as the labor market continues to tighten going into the latter part of 2015 that workers should begin to expect wage increases in 2015 and 2016. Assuming this occurs and it was the only development in the labor market that year, how would this affect the AS curve? What if it was also accompanied by an increase in worker productivity?

The CPI tracks the average change in prices of a basket of goods and services overtime, whereas the UNRATE is the percentage of the labour force that is unemployed.By examining the cointegration between these two variables, you can gain insightsinto the relationship between inflation and unemployment in the US economy. Thequarterly series is complete and seasonally adjusted.   a) From a theoretical perspective, are these two series expected to becointegrated? Justify your answer.   b)How do expectations about future economic conditions influence the speed ofadjustment? Are there any other factors that might affect the speed of adjustment?

When we say that economic fluctuations are “irregular and unpredictable,” we mean thata. the relationship between output and unemployment is erratic and difficult to characterize.b. when one macroeconomic variable that measures income or spending is falling, other macroeconomic variables that measure income or spending are likely to be rising.c. recessions do not occur at regular intervals.d. All of the above are correct.

There is an on‐going debate on how unemployment benefits affect the unemployment rate. In the context of the Mortensen‐Pissarides model, unemployment benefits are represented by the variable b. Explain carefully how an increase in b affects each equilibrium condition (Beveridge curve, vacancy supply condition, and wage setting curve.) How is the steady‐state unemployment rate impacted by an increase in b? Use the simulation tool here, https://www.briancjenkins.com/dmp‐model/simulation‐tool.html, to check your answer.

The figure below depicts the economy of Altrua, which is presently in equilibrium. Enter your responses below rounded to one decimal place. a. The size of its recessionary gap is $  .b. The size of this gap as a percentage of its actual GDP is  %.c. If the natural rate of unemployment is 1%, use Okun’s law to calculate the amount of actual unemployment in Altrua.   The actual rate of unemployment is  %. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate.

Suppose you observe that MPL > APL and MPL is decreasing but positive as more labor is used. Based on this, you can say that TP is ______ at______ rate, and APL must be ______. Please show your work clearly! Thank you! increasing; a decreasing; increasing increasing; a decreasing; decreasing increasing; an increasing; decreasing decreasing; a decreasing; decreasing decreasing; increasing; increasing