QUESTION 13 In an OLG economy where each generation has 14 bananas when young, and 6 bananas when old. Fed creates 4 units of money, given to generation 0 for free. In period 1, the price of one banana = $
Q: Write a sentence or two defining the following terms in your own words. Give examples of each. a.…
A: ("Since you have posted a question multiple sub parts, we will solve first three sub parts for you.…
Q: Q.3 Discuss how the wages are inter-related to the price policy?
A: In a market, wages are the compensation for the workers that they get when serving their services in…
Q: As a future manager in the future given the scenario below how will you be able to solve the problem…
A: Supply of goods is only possible because of the suppliers, producers in the market.
Q: People base their labor supply on the because they care about Select one: O a real wage; what their…
A: Answer to the question is as follows :
Q: 1.1 Explain what is meant in economics by "reservation wage".
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…
Q: Would increasing the minimum wage force business's to lay off workers and result in higher…
A: Minimum wage act: - it ensures the minimum amount of wage for workers. Unemployment: - unemployment…
Q: Problem 1 Consider the simple (one-period) production model. The production function is…
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…
Q: The main difference between market-clearing and non- market-clearing models of the economy is the...…
A: In an economy, market-clearing model is when a market operates at equilibrium where market demand…
Q: Question 13 Bruce is a single father with 1 child. He can work as a bagger at the local grocery…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Ly A Click Submit to complete this assessment. Question 1 1- one of the most famous Classical…
A: The ability to demand products and services is a direct result of the production activities that a…
Q: na market with job rationing, O A. labor is allocated by market forces O B. the quantity of labor…
A: The job rationing is that situation under which the real wage rate exceeds the equilibrium…
Q: Suppose that the "wage distribution" in the economy improves: for the same level of the wage, a…
A: The wage distribution in the economy improves. Wage offer received by workers is increased but the…
Q: There always has to be some unemployment, because O there are always some people changing jobs, and…
A: Unemployment means people are unemployed because they are looking for a job. It means they try to…
Q: The classical economic policy of laissez faire requires that the government O should balance its…
A: When there is either zero or minimum interference of the government is known as the situation of…
Q: An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of…
A: (Option D) 10 is the correct answer
Q: 1. “Constant dollars" show dollar amounts adjusted for inflation. Which jagged line in the left-hand…
A: Suppose minimum wage in 2020 is $10. Which is kept unchanged for next 10 years. Thus minimum wage in…
Q: Which of the following was not a reason why many Southem cotton planters found themselves in debt in…
A: Enslaved people's hard work was the source of profit for cotton planters.
Q: Has the overall impact of capitalism on Appalachia been positive or negative? Consider both how…
A: Overall impact of capitalism has been negative on appalachia,because of dominance of coal industry…
Q: Assume that the necessary labour time to produce good X is 7 hours and good Y is 5 hours. Use the…
A: According to Adam smith’s labour theory of value,the labour was the original exchange money for all…
Q: Refer to Figure 4-18. If this graph represents a labor market in a fictional country, which of the…
A: The market refers to a place where the sale and purchase of goods or services take place to fulfill…
Q: real GDP exceeds potential GDP, then employment is nemployment rate. full employment and the…
A: Okun's law states the inverse relationship between unemployment and GDP. According to Okun's law:…
Q: represents the Texas labor market. In this simplified model, labor and capital are the only factors…
A: When supply and demand are equal, the labor market is in equilibrium, and E* employees are paid w*.…
Q: The demand for labor is L= 4000 - 300w, where L is the number of workers demanded and w is the…
A: Labor Demand : Ld=4000-300w Labor Supply : Ls=200w Equilibrium wage=$8 Equilibrium quantity of…
Q: Although there is demand in the local market, much of the demand for Bangladeshi Jute output has…
A: Qdd = 1521-107P Qe =1773-148P Thus, QD = 3294-255P QS = 1613+192P
Q: If there are sticky wages, and the price level goes up the next period, then Select one: a. wage are…
A: Sticky wages refers to a situation when wages moves slowly in comparison to inflation.
Q: The table below shows several possible situations for an economy in terms of output gaps and the…
A: Given:Potential GDP=$800 billion
Q: If the population of the United States suddenlygrew because of a large wave of immigration,what…
A: Immigration is the international movement of people to a destination country of which they do not…
Q: Suppose that the "wage distribution" in the economy improves: for the same level of the wage, a…
A: A change in the wage or salary will result in a shift in the amount of labour demanded. If the wage…
Q: Question 11 (Market Failure) Consider a labor market in which employers hire and pay workers…
A: In economics, a scenario is known as a "market failure" is one in which the supply of commodities…
Q: e and not
A: Surplus of labor refers to the labor producing value beyond needed for the subsistence of the…
Q: vorkers and firms agree on an increase in wages based on their expectations of inflation and…
A: When the workers and firms agree on an increase in wages based on their expectations of inflation…
Q: Which of the following best denotes the reason for the existence of substantial black markets? O a…
A: The correct answer is Option c. The existence of substantial black markets is due to government laws…
Q: Differentiate between price setting behavior of firms with flexible prices and sticky price…
A: Price flexibility is a crucial thing for firms to make decisions. Price setting behaviors depend on…
Q: Which of the following refers to economic values? a. Amit is very contented and happy with his…
A: Economics is the study of production, distribution, and consumption when the resources are scarce in…
Q: In the above figure, at what minimum wage is the unemployment level equal to 200 million hours?…
A: Labor, being a factor of production, devotes time, and effort in order to produce goods and…
Q: Short answer question. Discuss how a firm’s demand for labor and the wage rate might change if the…
A: The demand curve for labour, under the ceteris paribus assumption, shows the amount of labor…
Q: An effective minimum wage policy in a competitive market will increase unemployment and increase the…
A: The lowest amount of money that an employer is required to pay wage earners for labor performed…
Q: The Federal Reserve and economists concerned about inflation monitor changes in technology, knowing…
A: Federal Reserve issues money in the US.
Q: All labour is
A: To find : What is category of labour
Q: Explain the working of price mechanism in different economic
A: The function of the price mechanism and individual remuneration in market economy distribution: The…
Q: An economy with competitive markets has 2 kinds of jobs, Routine & Skilled. There are 2 types of…
A: Option B is the correct Answer
Q: describe a decline in purchasing power evidenced in an economic environment of rising prices?
A: Nominal income: - Nominal income is the amount of money a person gets as its wage. Real income: -…
Q: Consider the market for dry vegetables. Suppose that there is increased taste for a healthy diet.…
A: Answer- Need to find- Consider the market for dry vegetables. Suppose that there is increased taste…
Q: Determine whether each of thefollowing would increase or decrease the opportunity costs formothers…
A: Choice emerges solely as a result of scarcity, because using scarce resources in one way precludes…
Q: A person may become unemployed as a result of cutbacks in a business's production. O True O False
A: Cutbacks in a business's production leads to less production of goods and services. due to which…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Is a decrease in the unemployment rate necessarily a good thing for a nation? Explain.Is it desirable to eliminate natural unemployment? Why or why not? Hint: Think about what our economy would look like today and what assumptions would have to be met to have a zero rate of natural unemployment.Structural unemployment is sometimes said toresult from a mismatch between the job skills thatemployers want and the job skills that workers have.To explore this idea, consider an economy withtwo industries: auto manufacturing and aircraftmanufacturing.a. If workers in these two industries requiresimilar amounts of training, and if workers atthe beginning of their careers can choose whichindustry to train for, what would you expect tohappen to the wages in these two industries? Howlong would this process take? Explain.b. Suppose that one day the economy opens itselfto international trade and, as a result, startsimporting autos and exporting aircraft. Whatwould happen to the demand for labor in thesetwo industries?c. Suppose that workers in one industry cannot bequickly retrained for the other. How would theseshifts in demand affect equilibrium wages both inthe short run and in the long run?d. If for some reason wages fail to adjust to the newequilibrium levels, what would occur?
- QUESTION 1Which of the following is an example of an unemployed person?O. A recent college graduate who has accepted a job offer but is taking the summor off before starting their new jobO. A full-time college student focusing solely on their studiosO. A collego-oducated Starbucks barista looking for a better jobO. A stay-at-home mother of 3 childrenO. A graduate studont looking for part-time wokBased on Okun's rule of thumb, if you forecast that the output gap will decline from -1% to -3%, the unemployment rate will: O rise by 0.5%. rise by 2%. O rise by 1%. fall by 1%.In a country called Uncle Sam Land (USL), the labor demand curve is given by:W = K- 4LWhere W is the wage rate, K is a variabledetermined by accumulated capital stock in thecountry, and L is the labor force in the country.K= 50 is supplied by the capitalists.If the labor force in this country goes up from 10 to 11, what happens to the national income in USL?National Income = income of all workers + income of all capitalists.Select one:a. Does not changeb. Goes down by 44c. Goes up by 8d. Goes up by 26e. None of the above.
- Sally is single. Her income rises because of her wise stock investments, but her wage rate stays the same. In the labor supply model that replaces "leisure" with "household production time," the increase in income will likely....Select one:OA. increase work hours as her higher income allows her to buy goods that make her more efficient in thehousehold.OB. decrease work hours as she spends more time in the household consuming more commodities.OC.decrease work hours because higher income people get more pleasure from working than being inthe household.OD. increase work hours as she spends less time in the household consuming more commodities.Out of all types of unemployment , which type of unemplyment has increased the most with the covid lockdown(s) ? Explain briefly why that is?To determineThe impact of increased production without increased inflation.
- Please no written by hand solutions Suppose that the markup of goods prices over marginal cost is 5%, and that the wage-setting equation is W= P(1-u), where u is the unemployment rate. a. What is the real wage, as determined by the price-setting equation? b. What is the natural rate of unemployment? c. Suppose that the markup of prices over costs increases to 10%. What happens to the natural rate of unemployment? Explain the intuition behind your answer.Explain whether each of the following changes in the composition of the labor force is likely toaffect frictional or structural unemployment and increase or decrease the measured natural rate ofunemployment.(a) A “baby boom” causes an increase in the share of young workers (age 16–24) as a percentageof the labor force. (b) A loosening of federal restrictions on eligibility for disability benefits leads to an increase inthe number of people receiving disability paymentsConsider an economy with 500 people in the labor force. At the beginning of every month, 5 people losetheir jobs and remain unemployed for exactly one month; one month later, they find new jobs andbecome employed. In addition, on January 1 of each year, 20 people lose their jobs and remainunemployed for six months before finding new jobs. Finally, on July 1 of each year, 20 people lose theirjobs and remain unemployed for 6 months before finding new jobs.1. What is the unemployment rate in this economy in a typical month?2. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?3. What is the average duration of completed spell of unemployment?4. On a particular date, what fraction of the unemployed are suffering a long spell (six months) ofunemployment? plz solve part 4 ? Thanks.