# The labor market - The role of technical change

Question # 00652481
Due on: 02/23/2024
Posted On: 02/23/2024 04:27 AM
Tutorials: 1
Rating:
4.9/5
Question

The labor market

The role of technical change

1. Assume WS and PS are as described below, except that A may differ from Ae.

Wage setting: W/Pe = Ae (1 – au + z)

And the price-setting equation (PS) is: P = (1+m) W/A

All variables are as defined in Chapter 13 in Blanchard. For this question, you should assume A=Ae.

a.) Draw the graph of WS and PS and also solve (mathematically) for the mediumrun equilibrium. What assumptions are you using?

b.) Suppose that A rises by more than Ae. Analyze the impact on the medium-run equilibrium. Explain the change in natural unemployment using intuition.

c.) Now suppose the rise in A exactly equals the rise in Ae. Analyze the new medium-run equilibrium, both graphically and mathematically. Explain how and why it differs from your answer in part b.

The Solow model

2. What are the effects (both short-run and medium-run) of the following changes in the Solow model of economic growth:

a) a fall in the saving rate, s

b) a rise in growth of the labor force, gN

c) a fall in the growth rate of technical change, gA

For each case use the model and graph from Chapter 12. Summarize the consequences for the growth of (i) output and capital, (ii) output per worker and capital per worker, and (iii) output per effective worker, capital per effective worker.

The meanings of “natural”

3. In this course, we have encountered several variables named “natural” including the natural rate of unemployment, (un), the natural rate of interest, (rn), and the natural rate of long run growth (gA + gN ).

a.) Provide a precise definition of each variable. Use any graph or math to illustrate what they mean and which model to which they refer.

b.) Is there any relationship between any of these variables? Do any of the variables imply on of the others?

c.) Are any of these variables really “natural”? Provide a critical assessment.

Uncovered interest parity

Use the example below to decide if global investors prefer Yen or Dollar denominated assets for the next year. The time horizon is 1 year (for interest rates and future exchange rates.) Show all calculations and explain in words.

Interest rates on dollar-denominated assets = 5%

Interest rates on yen-denominated assets = 2%

Spot exchange rate = E = 110yen/\$1

Expected future spot exchange rate = Ee = 95yen/\$1

Posted By :
Questions: 14429 Tutorials: 14429
Tutorials for this Question

#### The labor market - The role of technical change

Tutorial # 00651377
Posted On: 02/23/2024 04:27 AM
Feedback Score: Not rated yet!
Purchased By: 2
Posted By:
Questions:
14429
Tutorials:
14429
Tutorial Preview
The solution of The labor market - The role of technical change...
Attachments
The_labor_market_-_The_role_of_technical_change.ZIP (18.96 KB)

Great! We have found the solution of this question!

Related Questions
Argosy MBA6010 Strategic Planning Worksheet
MBA 6010 Argosy University Strategic Planning Worksheet Week 3 - Assignment 2: Calculate Investing in Productivity Improvements (HR) Previous Next  Instructions  Prepare a p …
Assignment 2: Case Study - Jobs that Literally Make People Sick
Assignment 2: Case Study—Jobs that Literally Make People Sick   Writing Assignment  Read the case under HR Oops! (in Chapter 4 of your textbook). Use the Argosy University onl …
Industrial Organization Discussion - Employee training can be defined
Argosy University Industrial Organization Discussion Employee training can be defined as planned organizational efforts to help employees learn job-related knowledge, skills, and other characterist …
Monopolistically Competitive Markets - Identify a business in a monopolistically
Monopolistically Competitive Markets Your work on this assignment should be individual and original. Any indication that you have copied materials from another source or consulted classmates or oth …
Discussion - Performance Management and Appraisal
Forum: Discussion: Performance Management and Appraisal A recent article in Kellogg Insight (an online publication of Northwestern University’s Kellogg School of Management) uncover …
Manage business across cultures Case Study
Manage business across cultures case study?500 words analysis The miniso doll incident (2022.8 Spain's miniso mistakenly referred to a Chinese-style cheongsam princess as a geisha doll in a soc …
Analysis of the role of balanced scorecards in an organization
Post an analysis of the role of balanced scorecards in an organization, to include the following: Describe an example from your professional career, current or past, in which the use of a balanced …
Marketing objectives - Why must marketing objectives and pricing
marketing objectives 1. "Why must marketing objectives and pricing objectives be considered when making pricing decisions? 2. "List several reasons consumers often blame intermediaries …
Discussion 1: Evaluate Ethics in a Business Scenario
Discussion 1: Evaluate Ethics in a Business Scenario Instructions Evaluate a recent scenario you observed or read about and include at least two ethical characteristics that were involved. Expla …
Business - Chose some ethical issue you feel is important
Business Question Create a PPT, or some other presentation, that accomplishes the following: Chose some ethical issue you feel is important (abortion, gun control, climate change, eating meat, a …
Recent Questions
Walden NURS6050 All Assignments Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 2 Assignment AGENDA COMPARISON GRID AND FACT SHEET It may seem to you that healthcare has been a nat …
Walden NURS6050 Week 11 Assignment Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 11Assignment GLOBAL HEALTHCARE COMPARISON MATRIX AND NARRATIVE STATEMENT Note: This Assignment (both …
Walden NURS6050 Week 10 Assignment Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 10 Assignment ASSESSING A HEALTHCARE PROGRAM/POLICY EVALUATION Program/policy evaluation is a valuab …
Walden NURS6050 Week 8 Assignment Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 8 Assignment ADVOCATING FOR THE NURSING ROLE IN PROGRAM DESIGN AND IMPLEMENTATION As their name …
Walden NURS6050 Week 6 Assignment Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 6 Assignment REGULATION FOR NURSING PRACTICE STAFF DEVELOPMENT MEETING Nursing is a very highly regu …
Walden NURS6050 Week 4 Assignment Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 4 Assignment LEGISLATION GRID AND TESTIMONY/ADVOCACY STATEMENT As a nurse, how often have you though …
Walden NURS6050 Week 2 Assignment Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 2 Assignment AGENDA COMPARISON GRID AND FACT SHEET It may seem to you that healthcare has been a nat …
Walden NURS6050 All Discussions Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 1 Discussion PRESIDENTIAL AGENDAS Rather than focus on the treatment of chronic disease, policies th …
Walden NURS6050 Week 9 Discussion Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 9 Discussion THE ROLE OF THE RN/APRN IN POLICY EVALUATION In the Module 4 Discussion, you considered …
Walden NURS6050 Week 7 Discussion Latest 2024
NURS6050C3 / NURS 5050C / NURS 6050N NURS6050 Policy & Advocacy for Pop Hlth- Week 7 Discussion EVIDENCE BASE IN DESIGN When politics and medical science intersect, there can be much …