Economists note there is a slowdown in labor productivity in the manufacturing sector. Explain the impact...
Economists note there is a slowdown in labor productivity in the manufacturing sector. Explain the impact on economic growth.
(AP Macroeconomics)
Homework Answers
Slowdown in labour productivity in the manufacturing sector will lead to lower production, in the existing labour force. Hence, in order to produce the desired quantity of product, the producer will need to increase the labour force. This increment in the labour force will increase the overall cost of production. The increased cost will lead to higher prices of commodity leading to inflation and lower purchasing power.
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Economists note there is a slowdown in labor productivity in the
manufacturing sector. Explain the impact...
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2) Slowdown in productivity growth Consider the following two scenarios: i) The rate of technological progress...
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6. Romer 2006, page 93 Q 2.6) Productivity slowdown. Consider a Ramsey-Cass-Koopmans economy that is on...
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Macroeconomics: 2. Figure: Technological Progress and Productivity Growth Real GDP per worker (constant dollars) Productivity using...
Macroeconomics:
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2) Slowdown in productivity growth Consider the following two scenarios: i) The rate of technological progress drops permanently. i The savings rate drops permanently. a) Analyse graphically, what is the impact of each of these scenarios on economic growth in the next five years (short run)? b) Over the next five decades (long run)? Discuss the effects on both growth rates and output levels.
6. Romer 2006, page 93 Q 2.6) Productivity slowdown. Consider a Ramsey-Cass-Koopmans economy that is on its balanced growth path (i.e. steady state) and suppose that there is a permanent fall in g (technological progress rate) b. How, if at , does this affect the c 0 curve? c-C/L C is consumption and L is Labor therefore c is consumption per labor in present, C is consumption per labor in future. 6. (Romer 2006, page 93 Q 2.6) Productivity slowdown....
Macroeconomics:
2. Figure: Technological Progress and Productivity Growth Real GDP per worker (constant dollars) Productivity using 2010 technology $120,000 90,000 В Productivity 60,000 using 1940 technology 30,000 0 10 20 30 40 50 60 70 80 90 100 Physical capital per worker (2000 dollars) Use Figure: Technological Progress and Productivity Growth. If there is a significant increase in human capital per worker (all other factors remaining unchanged), it is BEST indicated by a move from: O A to B. O...
7- Why is the financial sector important in more economic debates? Why are more economists concerned with the total amount of flows coming out of retiring to spending? What is money? What is a liquid financial asset? Why do people hold their assets in form of 8 money? 9 The major measures of money are M1 and M2 what are the major components of each of these measures? Why do economists focus their attention on M2? 10- Explain how banks...
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