PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
7th Edition
ISBN: 9781260110920
Author: Frank
Publisher: MCG
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Chapter 8, Problem 8.5CC
To determine
Explain the contraction between the actions of labor unions and employers on immigration.
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Do you think it is rational for workers to prefer sticky wages to wage cuts, when the consequence of sticky wages is unemployment for some workers? Why or why not? How do the reasons for sticky wages explained in this section apply to your argument?
It is possible for unemployment in a nation to reach 0%. True or false
The Federal Reserve Bank of Atlanta releases its monthly Wage Growth Tracker to study trends in wages across various industries. One interesting issue is whether wages rise faster for those who stay in their current jobs (job stayers) or those who seek new opportunities (job switchers). According to the data, job stayers tend to do better than job switchers during a recession. But when the labor market is strong, job switchers experience higher wage growth than job stayers.
a. During a recession, job stayers do better than job switchers because
a.labor demand increases and job switchers can find jobs with higher wages.
b.labor supply decreases and job switchers can find jobs with higher wages.
c.labor demand decreases and job switchers cannot find jobs with higher wages.
b. When the labor market is strong, job switchers experience higher wages than job stayers because
a.labor demand decreases and job switchers cannot find jobs with higher wages.
b.labor supply…
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PRINCIPLES OF MACROECONOMICS(LOOSELEAF)
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