Macroeconomics (Fourth Edition)
4th Edition
ISBN: 9780393603767
Author: Charles I. Jones
Publisher: W. W. Norton & Company
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 1E
(a)
To determine
The impact of new technology on the labor demand schedule.
(b)
To determine
The labor demand schedule in relation with consumption.
(c)
To determine
Impact of new technology on the real wage and employment.
(d)
To determine
Impact of new discovery when prices are rigid.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
What economic decisions do agents make in DSGE models?
Do you remember the Harrod-Domar model? Derive it and apply it to a numerical case where d=4%, s=35%, and gY=8% last year. If s is expected to rise to 45% next year, what will happen to gY?
Explain the use of econometrics in context with forecasting and policymaking by using some suitable hypothetical example.
How SRF and PRF lead to the difference between error and residual? Elaborate with appropriate graphical representation.
Chapter 15 Solutions
Macroeconomics (Fourth Edition)
Knowledge Booster
Similar questions
- Precautionary saving and prudence The Query to Example 17.2 asks how uncertainty about the future might affect a person's savings decisions. In this problem we explore this question more fully. All of our analysis is based on the simple two-period model in Example 17.1. a. To simplify matters, assume that r= in Equation 17.15. If consumption is certain, this implies that u(c0)=u(c1) or c0=c1. But suppose that consumption in period 1 will be subject to a zero-mean random shock, so that c1=c1p+x, where c1p is planned period- 1 consumption and x is a random variable with an expected value of 0. Describe why, in this context, utility maximization requires u(c0)=E[u(c1)] . b. Use Jensen's inequality (see Chapters 2 and 7 ) to show that this person will opt for c1pc0 , if and only if u is convex-that is, if and only if u0 . c. Kimball" suggests using the term "prudence" to describe a person whose utility function is characterized by u0 . Describe why the results from part (b) show that such a definition is consistent with everyday usage. d. In Example 17.2 we showed that real interest rates in the U.S. economy seem too low to reconcile actual consumption growth rates with evidence on individuals willingness to experience consumption fluctuations. If consumption growth rates were uncertain, would this explain or exacerbate the paradox?arrow_forwardConsider the model: yt = α0 + b0st + b1st-1 + b2st-2 + b3st-3 + ut. What is the effect of a permanent change in s on y?arrow_forwardBased on the extended Mundell-Fleming model, show your understanding of how the PB curve is formed. What is the meaning of equilibrium of the model (IS, LM and PB intersect at one point)?arrow_forward
- Carefully examine and discuss the major differences of the Mundell Fleming Model in the short run as opposed to in the long run. Thereafter, analyse the impact of these differences on the Model. (provide graphical illustrations where needed)arrow_forwardIS/LM Model refers to the general equilibrium not macroeconomic equilibrium.arrow_forwardAccording to Fisher Equation “a rise in inflation also rises the nominal interest rate by the same amount”. Construct a regression model by determining dependent and independent variables according to this theory.arrow_forward
- Changes in macroeconomic indicators can often be of relevance to business and influence decision-making concerning a range of issues related to things like profit forecasts, expected sales growth, expansion plans, etc. Assume you are employed as a business analyst with a large Singaporean based multinational corporation that manufactures electronic products. Identify and discuss how a major export market where electronic goods are sold experiences accelerating inflation.arrow_forwardApply current Australian economy to the AD/AS Model (Diagrams required) and determine which phase the economy is in: 2 phases in a Business Cycle: Recession (downturns) or Recovery (upturns) 2 turning cycle in a Business Cycle: Peak or Trougharrow_forwardIn which ways the product-cycle model inconsistent with the Heckscher-Ohlin model? In which ways are the two consistent? Explain in detail.arrow_forward
- E. Is unemployment rate a determinant of the murder rate in this data? Answer "YES" or "NO"______________. F. Is the treatment effect statistically significant at the 95% confidence level? That is, did removing the assault weapons ban have a statistically significant effect on the murder rate? Hint: Think about which coefficient we care about in a diff-in-diff set up. Answer "YES" or "NO"._____________. G. Does running this as a two-way fixed effects model make sense? Answer by inputting the number that is associated with the correct statement:______________.arrow_forwardexplain what is post heckscher-ohlin model?arrow_forwardMacroeconomic model Y = GDP C = private consumption I = investment G = public consumption and G is constant r. = interest rates m = supply of money C,h and L are differential functions a) how many degrees of freedom are there in this equation b) differentiate the Equation c) Put dM = 0 and find dY/dr and dI/drarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you