Suppose using the job search model, there is an increase in the job separation rate, s....

Question

Question

Suppose using the job search model, there is an increase in the job separation rate, s....

Suppose using the job search model, there is an increase in the job separation rate, s. What are the implications on the following:
a) The reservation wage (increase / decrease / indeterminate / no change)?

b) The unemployment rate (increase / decrease / indeterminate / no change)?

business economics

Add a comment Improve this question Transcribed image text

Answer 1

Similar Homework Help Questions

Suppose that Steve’s marginal revenue from job search is (MR = 110 – 7.25w), where w...

Suppose that Steve’s marginal revenue from job search is (MR = 110 – 7.25w), where w is the wage offer at hand. Additionally, Steve’s marginal cost of job search is (MC = 60 + 2w). a. Graph Steve’s MR and MC curves relating to job search. b. What will Steve’s asking wage be? c. Will Steve accept a job offer of $9.00? Justify your response with economic reasoning. d. Suppose that unemployment insurance benefits increase, causing the marginal cost of...
Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a...

Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a decrease in aggregate supply. The result will be a Select one: a. rise in real GDP but price level changes will be indeterminate. b. rise in real GDP and a fall in the price level. c. an indeterminate change in real GDP and a rise in the d. an indeterminate change in real GDP and a fall in the price level e. rise in...
Suppose you run the central bank in an open economy. What happens to the following variables...

Suppose you run the central bank in an open economy. What happens to the following variables of interest in response to the below events (analyze each event separately)? The president restricts the import of Chinese goods Use the standard open economy IS-LM model (not the Fleming-Mundell model). Also, assume direct effects of shifts are larger than indirect effects. a) IS – Direct Effect (increase / decrease / indeterminate / no change)? b) IS – Exchange Rate Effect (increase / decrease...

Suppose you run the central bank in an open economy. What happens to the following variables...

Suppose you run the central bank in an open economy. What happens to the following variables of interest in response to the below events (analyze each event separately)? The president restricts the import of Chinese goods Use the standard open economy IS-LM model (not the Fleming-Mundell model). Also, assume direct effects of shifts are larger than indirect effects. a) IS – Direct Effect (increase / decrease / indeterminate / no change)? b) IS – Exchange Rate Effect (increase / decrease...
Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more...

Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more leisure and less consumption goods. Using the RBC Model, what are the impacts on the following outcomes: a) Labor supply curve: (increase / decrease / indeterminate / no change)? b) Labor demand curve: (increase / decrease / indeterminate / no change)? c) Employment: (increase / decrease / indeterminate / no change)? d) Wages: (increase / decrease / indeterminate / no change)? e) Output: (increase...
1. Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward...

1. Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more leisure and less consumption goods. Using the RBC Model, what are the impacts on the following outcomes: a)Consumption: (increase / decrease / indeterminate / no change)? b) Savings: (increase / decrease / indeterminate / no change)? c) Investment: (increase / decrease / indeterminate / no change)?

show both changes in graph and answer 2. Assume the economy is initially in equilibrium, and...

show both changes in graph and answer 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: a) Output supply increase / decrease / indeterminate / no change)? b) Output demand (increase / decrease / indeterminate/ no change)? c) Labor supply increase / decrease / indeterminate / no change)? d) Labor demand (increase / decrease / indeterminate/ no...
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)...
Consider a simple model where workers can be either employed or unemployed. If the job separation...

Consider a simple model where workers can be either employed or unemployed. If the job separation rate is 2% per month and the job finding rate is 53% per month, which of the following is FALSE? a) There are more workers losing their jobs than there are unemployed workers finding a job b) None of the other options c) The steady state unemployment rate is 3.6% d)The steady state employment rate is 96.4%

Unemployment. Recall the model of long-run unemployment E' f-U+(1-8) . E = where E denotes current employment, U denotes current unemployment, s denotes the se aration rate, f denotes the job fi...

Unemployment. Recall the model of long-run unemployment E' f-U+(1-8) . E = where E denotes current employment, U denotes current unemployment, s denotes the se aration rate, f denotes the job finding rate, and E and U denote future employment and unemployment. As usual, we define the labor force as and the unemployment rate as: Answer the following (a) (3 points) Derive an expression for the steady state or natural rate of unemployment u" as a function of the job...

Suppose using the job search model, there is an increase in the job separation rate, s....

Homework Answers

Request Answer!

Add Answer to:
Suppose using the job search model, there is an increase in the job separation rate, s....

Post as a guest

Earn Coins

Suppose that Steve’s marginal revenue from job search is (MR = 110 – 7.25w), where w...

Consider the AD/AS macro model. Suppose there is an increase in aggregate demand and, simultaneously, a...

Suppose you run the central bank in an open economy. What happens to the following variables...

Suppose you run the central bank in an open economy. What happens to the following variables...

Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward more...

1. Suppose that due to increased drug addiction in the United States, consumer’s preferences shift toward...

show both changes in graph and answer 2. Assume the economy is initially in equilibrium, and...

2. Assume the economy is initially in equilibrium, and then firms expect future total factor productivity,...

Consider a simple model where workers can be either employed or unemployed. If the job separation...

Unemployment. Recall the model of long-run unemployment E' f-U+(1-8) . E = where E denotes current employment, U denotes current unemployment, s denotes the se aration rate, f denotes the job fi...

Suppose using the job search model, there is an increase in the job separation rate, s....

Homework Answers

Request Answer!

Add Answer to: Suppose using the job search model, there is an increase in the job separation rate, s....

Post as a guest

Earn Coins

Add Answer to:
Suppose using the job search model, there is an increase in the job separation rate, s....