ZuoTi.Pro
Question

Please upload a file or a picture of your answers 1. If unemployment is allowed, what is the equilibrium condition? 1. Draw in the graph, the demand, wage rates of both sectors, the employed labor in the urban sector 1. Draw the convex curve function of the unemployment rate, and label the equilibrium level or unemployment in your graph. 1. Why is the unemployment rate curve convex? 2. In the long run, if the employment rate is doubled, what will happen to the new urban unemployment rate?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Answer:

1. Let us a chance to expect, wr be the wage rate in the rustic horticultural area e aggregate number of occupations accessible in the urban segment, which ought to be equivalent to the quantity of urban utilized specialists lus be the aggregate number of occupation searchers, utilized and jobless, in the urban part wu be the wage rate in the urban part. which could be dictated by government with a lowest pay permitted by law. Rural to urban migration will take place if wr< (le/lus)wu Similarly, urban to ru wr> (le/lus)wu At equilibrium, wr-(le/lus)wu ral migration occurs if Harris-Todaro display manages the country urban movement. The relocation happens when expected country wage is higher than provincial wages. For this situation economy may have high rates of joblessness. So if unempoyment permitted, whatever be it is country or urban, this implies no hamony will happen, relocation will proceed2.

tahoun。 여URAAN ECTOR J044 unbo quouti 오ola.ou、ment ak un hau tmun al womkerS3. In determining long run equilibrium, Wu* (Lm/Lu)Wm Where, La+Lu- L ( L-workers used in agricultural production, Lu-workers used i n urban production) So, the no. of unemployed workers is, 1-(Lm/Lu). Then the function ofunemployment rate is-unemploymed workers x 100 Labour force Now, let us define real per capita income in the rural sector-(Pa/PXQaT/LrT) Where, Pa-agriculturalprices P general price level QaT total agricultural production LrT-total rural labour employment Now suppose, urban sectorcan be sub-divided into two more sectors, infomal sector and formal sector. so, urban formal sector income-wfL (LcT-Lu/ LcT) Where, Wf- the wage paid for good jobs in the city WfL(1-u)L-total number of hours worked per period per worker u=the formal sector unemployment rate Similarly, urban infomal sector income-WiLu Where Wi-the wage per hour paid in the informal sector Therefore the urban unemployment rate(u)-{WfL-k(Pa/(QaT/LrT)/L(Wf-Wi) Where, k-measurement of the degree of risk aversion. Now, as a result, 1.u will increase, if Wfincreases 2. u will increase ifL increases 3. u wil increase if k falls 4. u will increase if QaT/LrT falls 5. u will increase if Wi increases6. u will increase if PaP falls. 4. According to macroeconomics, unemploymentcurve isa representative of the Phillips curve. So as the money wage of labour in an economy rises the employment rate generally decreases. There is a inverse relationship between them. So the unemployment curves in basically convex to the origin.

0 0
Add a comment
Know the answer?
Add Answer to:
Please upload a file or a picture of your answers 1. If unemployment is allowed, what...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Please upload an electronic file or a picture with your answer here. 1.Set up Engel's law...

    Please upload an electronic file or a picture with your answer here. 1.Set up Engel's law by the graph. Label correctly the demand curve for each sector, the labor amount in each sector, the market clear wage rate, and the total labor force. 2. Suppose now there is an income growth, remember the demand of labor force is affected by income, wage rates of both sectors. In what possible situation, the new market clear happens when there is a migration...

  • Assignment #4 40 70 1. The graph drawn above is related to the Harris-Todaro model of...

    Assignment #4 40 70 1. The graph drawn above is related to the Harris-Todaro model of rural to urban migration. The curve RR' is the demand curve for rural labor and the curve UU' is the demand curve for urban labor. These demand curves show the marginal productivity of labor on the vertical axis. The economy has 100 million urban and rural workers, who are looking for jobs. Assume that the labor markets are perfectly competitive. () Then what would...

  • Question 13 12 pts Supply and Demand: Upload a file (probably a picture of the piece...

    Question 13 12 pts Supply and Demand: Upload a file (probably a picture of the piece of paper with your work on it) that answers the following question. Assume that we start in equilibrium and end in equilibrium. PROBLEM: Assume that milk and fertilizer are complements in production. If the price of fertilizer rises, what will happen in the market for milk? Your answer must include: 1. A graph that shows where the market started before the change and where...

  • ural Wage (in foad units) rban Wage (in foad units) 72 12 70 90 100 The...

    ural Wage (in foad units) rban Wage (in foad units) 72 12 70 90 100 The graph drawn above is related to the Harris-Todaro model of rural to urban migration. The curve RR' is the demand curve for rural labor and the curve UU' is the demand curve for urban labor. These demand curves show the marginal productivity of labor on the vertical axis. The economy has 100 million urban and rural workers, who are looking for jobs. Assume that...

  • Complete these 2 questions on a piece of paper and upload the file/picture of your answers....

    Complete these 2 questions on a piece of paper and upload the file/picture of your answers. 1. Draw a structure that satisfies the following conditions. (Structure must satisfy octet for all atoms except hydrogen.) ME: C8H12Br2 only 1 peak in the 1H nmr 2. Draw a molecule that fits the NMR data CuH16 0.8 ppm (triplet, 6H) 1.6 ppm (quintet, 4H) 2.3 ppm (quintet, 1H) 7.4 ppm (brd singlet, 5H)

  • Problem 7 Wage setting curve 25-Bargaising gao Price seting curve Employment, N Phillips curves Inaion ()...

    Problem 7 Wage setting curve 25-Bargaising gao Price seting curve Employment, N Phillips curves Inaion () bargaining pap ) Inarion () bargaining pap ) epected infation (31 expected infation (5%) U-3% Employment, N mployment at labour market equilibrium no bargaining gap (u-6%) Figure 2: Figure showing how expectations can shift the Phillips curve Copy Figure 2, making sure you leave plenty of space to the left of the 6% unemployment marker. Assume that from an initial position at A, there...

  • what is the equilibrium unemployment rate abd the cyclical unemployment in the case if tbis question...

    what is the equilibrium unemployment rate abd the cyclical unemployment in the case if tbis question and hkw di you find it? thanks! Consider the following table in which columns (1) and (2) give information about the initial short-run aggregate supply curve for the fictional country of Zerovia. Column (3) shows total employment at different output levels. There are eight million workers in the total labour force. Usually, 500 000 workers are structurally or frictionally unemployed. TABLE ONE (6) (1)...

  • Suppose that the economy of Witland in the figure below is at full-employment equilibrium and the present nominal wage rate is $22 per hour. Round your answers to two decimal places. a. The real wage rate (in base year prices) is $ . b. Suppose th

    Suppose that the economy of Witland in the figure below is at full-employment equilibrium and the present nominal wage rate is $22 per hour. Round your answers to two decimal places.  a. The real wage rate (in base year prices) is $  .  b. Suppose that aggregate demand increases by $400. Draw the new AD curve in the graph above. Plot only the endpoints of the curve. c. At the new equilibrium real GDP level, the value of the real wage rate will be...

  • The graph shows the economy in long-run equilibrium Then the world economy expands and the demand...

    The graph shows the economy in long-run equilibrium Then the world economy expands and the demand for U.S.-produced goods increases Price level (GDP deflator, 2009-100) 14 Draw a curve that shows 1) the effect of increased demand for U.S.-produced goods. Label it 1 2) the effect of a rising money wage rate that returns the economy to full employment. Label it 2. Draw a point at the new long-run equilibrium 13 SAS 12 An economy is in a long-run equilibrium....

  • Question 3: (45 marks] Suppose the price-setting equation is given by P= (1+mW where m is...

    Question 3: (45 marks] Suppose the price-setting equation is given by P= (1+mW where m is the markup. The wage-setting equation is given by W = pe? where z are unemployment benefts and u is the unemployment rate. 1. Derive the real wage and unemployment consistent with equilibrium in the labor market in the medium run. Is this the natural rate of unemployment? Does the equilibrium rate of unemployment change if unemployment benefts decrease? Explain? (8 marks] 2. Draw the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT