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How long will it take for output to double? Now suppose technology grows at a rate of 2 percent. Recalculate your answers to ( a ) and ( b ).
The CPI and PPI are both measures of the price level. How are they different, and when might you prefer one of these measures over the other?
What are some problems with this interpretation? Which do you think is the biggest problem with it, and why?
Analyze what is the difference between GDP and GNP? Is one a better measure of income/output than the other? Why?
What would happen to GDP if the government hired unemployed workers, who had been receiving amount $ TR in unemployment benefits.
Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion. What is an output gap in this hypothetical economy?
Using the aggregate supply-aggregate demand model, explain how output and prices are determined. Will output vary or stay fixed in the long run?
Suppose a landscaping firm offers a wage equal to $41. What is the average productivity of its workforce? On average, what is the firms profit per worker?
What are the implications for the supply curves facing the employers janitorial firms and hospitals?
Use your supply curves to compute the number of average and high-quality teachers. How has the composition of the workforce changed?
If the price elasticity of demand for the firm s product is 2.0, how will featherbedding affect the firm s total demand for labor?
Should the union increase or decrease the union wage? Explain. Why is there a trade-off between wages and total employment?
Assume that there is no substitution effect from changes in wages. Use two graphs to show effects of the increase in the wage on the quantity of labor demanded.
Suppose the union s objective is to maximize total labor income. What is the income-maximizing wage and quantity of labor demanded?
How does unionization affect wages and the composition of the workforce? What Happened to the High-Aptitude Female Teachers?
What insights does this exercise provide about why firms are more likely to interview and hire applicants with white-sounding names?
How will the new tip rate affect the daily income (wages plus tips) of the typical waiter?
Explain the roles of the output effect and substitution effect on the change in the quantity of labor demanded.
How would you expect this law to affect the average quality of teachers and the taxes paid by the typical household?
Payroll Tax. You are an economic consultant to a city that just imposed. Use a graph to show the effect of the tax on the equilibrium wage and employment.
Suppose that farm workers are responsible for onefourth of production. What are the implications of immigration for the cost of producing food and its price?
Suppose the initial fare per mile is $0.60 and the initial miles per day is 100. Compute the percentage change in daily income.
Draw two supply curves for carpenters: one for the market in the city of Portland and one for the market in the UnitedStates.
If Sabrina continues to work 40 hours per week, how does the change in the pay plan affect her total income?
As a result, the publisher increases the monthly price of a subscription by 20 percent. How will the new law affect the monthly income of the typical news kid?