This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain what effect a reduction in productivity has on wage setting behavior, price setting ... (Read 231 times)

pepyto

  • Hero Member
  • *****
  • Posts: 547
on: Jun 30, 2018
Explain what effect a reduction in productivity has on wage setting behavior, price setting behavior, the equilibrium real wage, the natural rate of unemployment, and the natural level of output.
 
  What will be an ideal response?

Question 2

Suppose a one-year discount bond offers to pay 100 in one year and currently sells for 99. Given this information, we know that the interest rate on the bond is
 
  A) 11.1.
  B) 10.
  C) 5.3.
  D) 9.9.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

dmurph1496

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 30, 2018
Answer to Question 1

A reduction in A will cause a reduction in the real wage based on WS behavior; therefore, the WS curve shifts down by the change in A. The reduction in A increases the marginal cost of an additional unit of output so firms will raise the price. Hence, the real wage based on PS behavior will fall by A and the PS curve shifts down by A. Given the size of the shifts in the WS and PS curves, u does not change; however, the real wage does fall.

Answer to Question 2

A


pepyto

  • Member
  • Posts: 547
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

CAPTAINAMERICA

  • Member
  • Posts: 325
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

More than nineteen million Americans carry the factor V gene that causes blood clots, pulmonary embolism, and heart disease.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Nearly all drugs pass into human breast milk. How often a drug is taken influences the amount of drug that will pass into the milk. Medications taken 30 to 60 minutes before breastfeeding are likely to be at peak blood levels when the baby is nursing.

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

The top 10 most important tips that will help you grow old gracefully include (1) quit smoking, (2) keep your weight down, (3) take supplements, (4) skip a meal each day or fast 1 day per week, (5) get a pet, (6) get medical help for chronic pain, (7) walk regularly, (8) reduce arguments, (9) put live plants in your living space, and (10) do some weight training.

Effect of clinical decison support systems Effect of clinical decison support systems
A pharmacist can explain to a patient why medication may look different and ensure the correct ... A pharmacist can explain to a patient why medication may look different and ensure the correct ...
Mechanisms to Explain the Effects of Massage Mechanisms to Explain the Effects of Massage
Effect of cooperative substrate binding on enzyme kinetics Effect of cooperative substrate binding on enzyme kinetics
Organic approaches and the reduction of inputs and pollution Organic approaches and the reduction of inputs and pollution
Social scientists have not done well at devising theories to explain lovely romantic moments Social scientists have not done well at devising theories to explain lovely romantic moments
Video: Bipolar Disorder

For a complete list of videos, visit our video library