Suppose there is a permanent increase in total factor productivity. Show what will happen to wages...
Suppose there is a permanent increase in total factor productivity. Show what will happen to
wages and the equilibrium quantity of labor using a graph of the labor market. Explain. Why is
your answer different from problem number (3)?
Homework Answers
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Suppose there is a permanent increase in total factor
productivity. Show what will happen to
wages...
1. Suppose the U.S economy enters a recession and incomes fall. What will happen to the...
1. Suppose the U.S economy enters a recession and incomes fall. What will happen to the equilibrium prices and quantities of inferior goods? If price stays the same would that be equilibrium? Why or why not? What will eventually happen in th3 market? What happened to equilibrium price and quantity? Which quantity is affected and how do you know? Would your answer be the same if you were discussing normal goods? Explain using supply/demand graphs. 2. Draw a graph showing...
Given that Labor Force is 120M workers, the capital stock is 32 B, and total productivity...
Given that Labor Force is 120M workers, the capital stock is 32 B, and total productivity is 2933.71 A. If production function is Y=AK1/4L3/4, What is real GDP b. What is MPL c. What is MPK d. If labor force increase 130 M workoers, what will happen to real GDP c. Graph the production function, with capital on the horizontal axis, and use your graph to explain the different effect of doubling force and doubling total factor productivity.
1. Consider the market for AT&T Sim Cards in the U.S., suppose their demand and supply...
1. Consider the market for AT&T Sim Cards in the U.S., suppose their demand and supply curves are given by the following equations: Q = 26,000 – 600P Q = 9,000 + 1,100P Where P is measured in dollars Q is the number of Sim Cards sold per year. a. Find the equilibrium price and quantity in this market? b. Draw the graph to show the equilibrium price and quantity c. Suppose the price is currently equal to $8 in...
An expected future increase in total factor productivity does NOT affect: current output demand. current investment...
An expected future increase in total factor productivity does NOT affect: current output demand. current investment demand. current labor demand. current wages.
Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the...
Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the equilibrium price and equilibrium quantity of coffee in each of the following scenarios. Please place your final equilibrium effects on price and quantity in the SNoodle box below (ie. just say 'Equilibrium price increase/decreased etc and equilibrium quantity increased/decreased etc."). Be sure to put your graphical analysis on your scratch paper to be turned in. Credit will be given not only for the correct...
Suppose the govenment were to subsidize the wages of all women in the population by paying...
Suppose the govenment were to subsidize the wages of all women in the population by paying their employers 50 cents for every hour the worked. What would be the effect on the wage rate women received? What would be the effect on the net wage employers paid? Show this on a graph On a separate graph, consider the labor market for men. Label both axes and show the equilibrium wage and employment levels. Would the subsidy for women affect the...
2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity,...
2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity, z', to decrease. Using the New Keynesian Model framework, what are the implications on the following outcomes. For the money market, use the framework with interest rates on the vertical axis. f) Wages (increase / decrease / indeterminate / no change)? g) Money supply increase / decrease / indeterminate / no change)? h) Money demand increase / decrease / indeterminate / no change)? i)...
Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the...
Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the equilibrium price and equilibrium quantity of coffee in each of the following scenarios. Please place your final equilibrium effects on price and quantity in the SNoodle box below (Ge,just say Equilibrium price increase/decreased etc and equilibrium quantity increased/decreased etc.). Be sure to put your graphical analysis on your scratch paper to be turned in. Credit will be given not only for the correct answers,...
Suppose that the market for cantaloupes is currently in long-run equilibrium at a price of $3...
Suppose that the market for cantaloupes is currently in long-run equilibrium at a price of $3 per melon. A listeria outbreak in cantaloupe crops leads to a sharp decline in the demand for cantaloupes. a) In the short-run, what will happen to the price of a cantaloupe? Explain and use a graph to illustrate your answer. b) In the short-run, how will firms respond to the change in the price described in part (a)? What will happen to each producer’s...
True or false? An increase in Total Factor Productivity always increases the firm’s profit. (You can...
True or false? An increase in Total Factor Productivity always increases the firm’s profit. (You can assume there is no government for simplicity.) Explain/ support answer
Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the equilibrium price and equilibrium quantity of coffee in each of the following scenarios. Please place your final equilibrium effects on price and quantity in the SNoodle box below (ie. just say 'Equilibrium price increase/decreased etc and equilibrium quantity increased/decreased etc."). Be sure to put your graphical analysis on your scratch paper to be turned in. Credit will be given not only for the correct...
Suppose the govenment were to subsidize the wages of all women in the population by paying their employers 50 cents for every hour the worked. What would be the effect on the wage rate women received? What would be the effect on the net wage employers paid? Show this on a graph On a separate graph, consider the labor market for men. Label both axes and show the equilibrium wage and employment levels. Would the subsidy for women affect the...
2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity, z', to decrease. Using the New Keynesian Model framework, what are the implications on the following outcomes. For the money market, use the framework with interest rates on the vertical axis. f) Wages (increase / decrease / indeterminate / no change)? g) Money supply increase / decrease / indeterminate / no change)? h) Money demand increase / decrease / indeterminate / no change)? i)...
Suppose the market for coffee is in equilibrium. Explain (using graphs) what would happen to the equilibrium price and equilibrium quantity of coffee in each of the following scenarios. Please place your final equilibrium effects on price and quantity in the SNoodle box below (Ge,just say Equilibrium price increase/decreased etc and equilibrium quantity increased/decreased etc.). Be sure to put your graphical analysis on your scratch paper to be turned in. Credit will be given not only for the correct answers,...
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