Question

The following happens: N (labor) does not change, W (wage) falls, P (price level) falls, and...

The following happens: N (labor) does not change, W (wage) falls, P (price level) falls, and Y (Real GDP) rises. Could all of this be the result of only and an advancement in technology?

Explain and diagrammatically represent your answer.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose the economy is characterised by the following equations: Price setting: P = (1+m) (W/A) Wage...
Suppose the economy is characterised by the following equations: Price setting: P = (1+m) (W/A) Wage setting: W = Ae P e (1-u) where A is the unobserved and difficult to estimate technology parameter in the production function Y=AN, and Ae is its expected value. First suppose that expectations of both prices and technology are accurate. Solve for the natural rate of unemployment and medium-run real wage rate if the mark-up, m, is equal to 10 per cent and A...
Question: According to Monetarism, when does an increase in money supply change only price level and...
Question: According to Monetarism, when does an increase in money supply change only price level and not Real GDP? In the short run or in the long run? Explain your answer using a diagram.
3. An economy is characterized by the following price- and wage-setting equations: P = (1+m)(W/A) W...
3. An economy is characterized by the following price- and wage-setting equations: P = (1+m)(W/A) W = PeAe(1-u)a. Find the rate of unemployment if Pe=P but Ae does not necessarily equal A. Explain the effects of Ae/A on the unemployment rate. b. Now suppose that Pe=P and Ae=A. Solve for the natural rate of unemployment if the markup is equal to 0.05 .c. Does the natural rate of unemployment depend on productivity? Explain.
9) Following a decrease in government spending, as the price level falls we would expect the...
9) Following a decrease in government spending, as the price level falls we would expect the level of interest rates to ____ and investment to ____ A) decrease;decrease B) decrease;increase C) increase;decreas D) increase;increase 10) When an economy is in a recession, the Fed needs to do a(n) ___ monetary policy. This policy would____ prices A) expansionary; lower B) expansionary; raise C) contractionary ; lower D) contractionary; raise 11) we know the following notation: V= velocity of money M= money...
1. Recall the classical economists and one of their favorite theories: the quantity theory of money...
1. Recall the classical economists and one of their favorite theories: the quantity theory of money and monetary neutrality. The theory is expressed as an equation as follows: M x V = P x Y. What does V stand for? a. the value of the domestic currency b. the velocity of money c. the virtual reality of the universe d. the velocity of investment spending in the economy 2. Following up on question 1 above, what does Y represent? a....
Use short-run supply demand analysis to indicate how equilibrium price and quantity will change if the...
Use short-run supply demand analysis to indicate how equilibrium price and quantity will change if the following changes occur in the economy. Draw a supply and demand curve for each answer and provide a brief one sentence explanation. a) Potatoes are an inferior good, and national income falls as a result of a recession. What happens to the market for potatoes? (An inferior good is one in the demand for the good falls as income rises. b) Peanut butter and...
Which of the following would cause an increase in the natural level of unemployment? a decrease...
Which of the following would cause an increase in the natural level of unemployment? a decrease in taxes a decrease in the money supply a decrease in government spending an increase in taxes none of the above If u < un, we know with certainty that: Question 7 options: Y < Yn P >Pe P = Pe Y = Yn More than one of the above Suppose i = 5%, i* = 8%, and that the domestic currency is expected...
5) The economy has an aggregate production function fN=15N-12N2 , where N is labor input. Labor...
5) The economy has an aggregate production function fN=15N-12N2 , where N is labor input. Labor supply is given by NsWP=-5+3WP , where W is the money wage and P is the price level. Desired consumption depends on real income, Y, and can be written as CdY=10+0.7Y . Given real interest rate, r, the desired investment is Idr=30-200r . The real money demand is characterized by LY,r=10+Y-200r . Government spending, G, and nominal money stock, M, is given as G=0...
During the recessions of 2001 and 2008-09, Select one: a. only the broader measures of the...
During the recessions of 2001 and 2008-09, Select one: a. only the broader measures of the unemployment rate increased. b. only the narrower measures of the unemployment rate increased. c. the labor force participation rate for women increased. d. all measures of the unemployment rate (U-1 through U-6) increased. e. the labor force participation rate for men increased. --- Full employment is the level of unemployment that occurs Select one: a. None of the above answers is correct. b. when...
As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the...
As the level of real GDP increases, the short-run aggregate supply curve: a. shifts to the right. b. shifts to the left. c. becomes flatter. d. becomes steeper. e. becomes horizontal to the real GDP axis. Firms' profits or production do not increase in the long run because: a. some factors of production are fixed in the long run. b. all the factors of production are variable in the long run. c. changes in factor costs completely offset any change...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT