According to the Rybezynski theorem, why will labor immigration lead to a long-run increase in output in a labor-intensive industry, and a decrease in the output of a capital-intensive industry, and in the very long run not change the returns to labor and capital? use graphs and/or numerical examples
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According to the Rybezynski theorem, why will labor immigration lead to a long-run increase in output...
In the long run, an increase in the money supply will lead to A a decrease in velocity. B a decrease in nominal GDP. C an increase in nominal GDP.
Use our “firm and market” graphs to walk through the short-run and long-run response of a perfectly competitive industry to a decrease in demand for its product. At the firm level, use these graphs to discuss an individual firm’s level of output and profit, as well how the number of firms in the industry will change. At the market level, discuss how the overall quantity of the good produced and the market price will change.
9) According to the Solow model, an increase in the capital-labor ratio will A) always reduce steady state consumption per worker. B) always increase steady state consumption per worker. C) reduce steady state consumption per worker if the capital-labor ratio is below the Golden rule capital stock. D) increase steady state consumption per worker if the capital-labor ratio is below the Golden rule capital stock. in the 10) According to the Solow model, in the long run, an increase in...
If bagel shop has decreasing returns to scale: In the short run - how would the shop react to an increase in the output price (p)? a decrease in wage (w)? In the long run - how would the shop react to an increase in capital (r)? (i.e., how would the supply curve, profit-max. labor demand shift, input choice? Draw a diagram if possible)
3. The following diagram represents the Argentine economy, producing paper and pens: O pens oup or O paper brt Argentina's Labor Supply oda Which industry is labor-intensive? b. What does the vertical axis represent? c. Suppose the immigration increases Argentine population by 20%, will wage increase or decrease in the long run? Why? d. (Cont. from part c.) Modify the diagram to reflect the immigration. Will the production of paper increase or decrease? How about the production of pens? a....
1) The long-run aggregate supply curve shifts to the right when there is A) a decrease in the total amount of capital in the economy. B) a decrease in the total amount of labor supplied in the economy. C) a decrease in the available technology. D) a decline in the natural rate of unemployment. 2) The short-run aggregate supply curve shifts to the right when A) output gap is higher. B) output gap is lower. C) expected inflation is higher....
Question 9 a) An increase in potential output in the AD-AS supply model will in the long run lead to what? A. None of the other options B. No change in output and an increase in inflation relative to the initial equilibrium C. An increase in output and an increase in inflation relative to the initial equilibrium D. A decrease in output and a decrease in inflation relative to the initial equilibrium b) Consider an AD-AS model with AD curve...
In long-run production function, we assume that: Capital and technology are fixed, but firms can add labor to increase output. Capital and labor are fixed, but firms can change the technology they use to increase output. Labor and technology are fixed, but firms can add capital to increase output. Technology is fixed, but firms can add both labor and capital to increase output Capital, labor, and technology are fixed and output can be decreased but not increased.
In the long run, demand-pull inflation leads to __________ in real output, __________ in employment levels, and __________ aggregate prices. Group of answer choices no change / no change / higher no change / a decrease / lower a decrease / an increase / lower an increase / a decrease / higher