4. So a friend, a non econ friend, looks at your answers in e) above and asks you: Why are your answers so different? How would you answer your friend (act like you are an economist!)? In e), we found the percent change in real wage between April 2019 to April 2020 is 7.38%, and the percent change in the real wage between July 2020 and July 2021 is 0.59%
Q: Economists use labor-market data to evaluate how well an economy is using its most valuable…
A: The unemployment rate is the percentage of unemployed people among the total labor force.
Q: Suppose a country has a production function Y=2K0.5L0.5, where K is the amount of capital and L is…
A: As per given information given in question; The Cobb Douglas Production FUnction is given below ;…
Q: Which of the following is TRUE regarding the real wage rate? The real wage rate I. is always greater…
A: In an economy, wage rate is the amount of money that an individual get when he provides his services…
Q: Assume you have the following information about an economy: Labor Force of an Economy Number of…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Assume that there is a discovery of new accessible iron ore deposits off the coast of Newfoundlanc…
A: The demand for labor curve is downward sloping. It shows the number of workers that a firm is…
Q: In 2019, there were 10,000 people employed, 1,000 people unemployed, and 1,500 people not in the…
A: Answer; Employed = 10,000 Unemployed = 1000 Not in the labour force = 1500 Total number…
Q: What is the quantity of real GDP produced if the real wage rate is at the full-employment…
A: Real GDP is inflation adjusted money value of all final goods and services produced in an economy.
Q: You are given the following information on an imaginary economy of their adult population. Number of…
A:
Q: Which of the following is an example of the real flow in the circular flow model of economics? A. A…
A: The interaction and relationship between the households and the business is interpreted by the…
Q: What is your opinion on the idea that a persons income and wealth in American society today is…
A: The economic performance of the country would be determined by the national income or the output.…
Q: Use the following information to calculate: ______________…
A: (a) Laspeyer's index = ∑[{((p1 x q0)} / {((p0 x q0)}] x 100 Laspeyer's index in 2020 = [(100 x 100 +…
Q: Consider an economy with the following data: Employed = 891 million Unemployed = 9 million…
A: Unemployment Rate = Total Unemployed / Total Labor Force * 100 Total Labor Force = Total Employed +…
Q: Following graph shows business cycle fluctuation in a hypothetical economy . " Y " denotes year ,…
A: The business cycle, also referred to as the economic cycle, is essentially the upward and downward…
Q: Which of the following is TRUE? Select one: a. Real GDP in the U.S. is 12 trillion dollars. b.…
A: Real GDP is the value of GDP calculated at with base year prices in comparison to the nominal GDP…
Q: The table provided shows the amount consumers of a country spend on five items and the percentage…
A: Total expenditure is the multiplication of price and quantity. It means as the price rises then the…
Q: What is meant by the cost of living? Describe the cost of living in the state of New Jersey.
A: Cost of living can be explained as the money required for the expenses incurred on the basic…
Q: Show graphically and explain how a rise in labor productivity affects the real wage rate.
A: Higher productivity refers to an increase in the real output per hour. This means labor is able to…
Q: Which of the following would likely be studied by a microeconomist rather than a macroeconomist? a.…
A: Hi! thanks for the question but as per the guidelines, we answer only one question at one time.…
Q: Following graph shows business cycle fluctuation in a hypothetical economy. "Y" denotes year, and…
A: The points A and C show the trough and the points B and D show peak. The trough is the lowest point…
Q: Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time…
A: Potential GDP is the natural rate of output produced when the economy is at full employment.
Q: .Real GDP is considered a ____ varia
A: In economic real variables are those which are adjusted for price levels/inflation and their value…
Q: Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues from newly mined gold…
A: Total revenue before the price change = $10 million, Price increased by = 100% New sales revenue =…
Q: Using examples, explain six (6) implications of an increasing unemployment rate to an economy?
A: The unemployment rate is an important indicator of economic health. A decrease in the unemployment…
Q: In 2019 in the United Kingdom, the adult population was about 65 million, the labour force…
A: Given that the adult population is 65 million and the labor force participation rate is 60%, the…
Q: Economists use labor-market data to evaluate how well an economy is using its most valuable…
A: The concept that depicts individuals who are in turn employable and also seeking a job actively but…
Q: Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues from newly mined gold…
A: Change in total revenue can be due to change in price or real output.
Q: Which of the following is most likely a topic of discussion in microeconomics? a)an increase in the…
A: Economics is the study of how scarce resources are utilized by individuals, societies, and nations…
Q: Economists find in a business cycle, a peak represents the end of and a trough represents the end of…
A: The business cycle shows the trends of the gross domestic product (GDP) and how it expands/changes…
Q: Which of the following is an example of a positive economic statement? O The unemployment rate…
A: In economics, positive economic statements are those statements that are based on facts and are…
Q: Briefly discuss the costs of unemployment
A: Unemployment arises in social science once individuals square measure idle whereas actively trying…
Q: Fill in the missing values in the table below.
A: Real gdp= Nominal gdp/ price index Nominal gdp =Real gdp× price index Price index = Nominal gdp/Real…
Q: Suppose the unemployment rate in Economia is 8%, and there are 2 million unemployed persons in the…
A: Answer : 25
Q: What is the quantity of real GDP produced if the real wage rate is at the full-employment…
A: In the labor market, the equilibrium wage and employment are determined at a point where the labor…
Q: Q6. Suppose the number of employed people in an economy is 312,545,372. The unemployment rate in…
A: Given, employed= 312,545,372. unemployment rate = 7.4 percent, or .074. the labor force…
Q: Refer to the table below for the following question. Suppose this economy has labor force…
A:
Q: Last week Frank quit his job in Kansas City expecting to be able to get a job as an actor in Los…
A: An individual is: not in the labor force if he or she is not actively looking for a job or is…
Q: When the labour market is in equilibrium, it means that the number of jobs in the economy is equal…
A: Answer: Even if the labor market is in equilibrium there exists some level of unemployment. It is…
Q: The Hatfields and the McCoys both earn $10,000 per year in real terms in the labor market, and both…
A: People often split their income between consumption and savings. When a household saves, it takes a…
Q: A changing-basket price index (Passche index) like the GDP deflator tends to: a. underestimate the…
A: CPI is said as the consumer price index. It is a good measure of inflation. It measures the change…
Q: Assume the number of employed people in Pakistan is 22.5 million in 2020. The number of unemployed…
A: 1) Number of employed= 22.5 million Number of unemployed= 6 million Labor force= Employed+…
4.
So a friend, a non econ friend, looks at your answers in e) above and asks you: Why are your answers so different? How would you answer your friend (act like you are an economist!)?
In e), we found the percent change in real wage between April 2019 to April 2020 is 7.38%, and the percent change in the real wage between July 2020 and July 2021 is 0.59%
Step by step
Solved in 2 steps
- Hey! Need help with the following Macroeconomics question, it contains four small sub-questions. Thank you in advance! In this question, use what you learned in the second part of the chapter to compare the performance of an economy in two different time periods, as a result of changes in its physical capital stock and efficiency units of labor. Suppose that from period 1 to period 2, the unemployment rate in the economy increases. Everything else remains unchanged. What happens to the total efficiency units of labor? Express your results formally as an inequality, using the formula for total efficiency units of labor presented in the chapter (in particular, recall that total efficiency units of labor in two periods can be written as and , where L is the total number of employed workers). What are the consequences for GDP of this increase in unemployment? Express your results formally as an inequality, using the aggregate production function presented in the chapter. What are the…Recent data from the Bureau of Labor Statistics show that the average price level for consumers rose 5.4% over the past year. While some are expressing concern over rising inflation leading the economy to “overheat,” there is some evidence indicating that this is due to the reopening of the economy as producers adjust to rising demand for goods and services. Many of the goods with the largest price increases, like bacon or cars and trucks, cannot have their production ramped up as quickly as demand is increasing. Other industries are facing supply chain challenges, like shortages of truck drivers. These problems are most likely to be short term, so, as supply catches up with demand, we can expect to see prices return to normal. As evidence, after spiking to record highs in early summer, lumber prices have now fallen below their price at the start of the year. The reason for the dramatic price increase earlier in the year was a combination of reduced supply in 2019 and a surge in demand…In the United States economy, there is a great deal of focus on technological advancements. These advances are said to increase worker productivity (like Zoom) or increase the productivity of capital (such as technology that makes the supply chain more efficient).What effect does advancement in technology have on the equilibrium real rental price and capital, assuming that the supply of capital is fixed? Explain, using the terms in the production function, how you know this to be true.
- Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table.Consider a fictional price index, the Canadian Student Price Index (CSPI), based on a typical university student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 Notebooks Calculators Large coffees Energy drinks Textbooks Total cost Price index Quantity in Basket 10 1 200 100 10 Price (Dollars) 2 50 1 2 100 Suppose the base year for this price index is 2017. Cost (Dollars) 20 50 200 200 1,000 Between 2017 and 2018, the CSPI increased by 1,470 100 Price (Dollars) 1 54 1 3 120 2018 Cost (Dollars) In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Price (Dollars) 3 75 1 4 150 %. Between 2018 and 2019, the CSPI increased by 2019 Professors…Which of the following is a macroeconomic statement? 1) The price of farmland in the U.S. increased by 30 percent in 2011 to 2012. 2) The gross domestic product in the first quarter of 2014 decreased from the previous quarter. 3) General Motors' profits increased last year. 4) The productivity of steelworkers increased by 1 percent last year.
- The table below shows the total expenditure on a basket of goods and services; use this information to calculate the index number for the cost of a basket of goods and services in periods 1, 2 and 4, assuming Period 3 is the base year. Write the index numbers in order from Period 1 to Period 4. (Round to 1 decimal place. Include the index number for period 3 in your answer.) Provide your answer below: Period 1 Period 2 Period 3 Period 4 Total Expenditure $12, 240 $12,900 $13,530 $14,250 Index NumberConsider a fictional price index, the College Student Price Index (CSPI), based on a typical college student’s annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. **THE TABLE IS ATTACHED** Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by_________%. Between 2018 and 2019, the CSPI increased by_________%. Which of the following, if true, would illustrate why price indexes such as the CSPI might overstate inflation in the cost of going to college? Check all that apply. As the price of textbooks increased, more and more students…Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 15 2 30 8. Calculators 70 70 100 130 Large coffees 250 2. 500 2. Energy drinks 50 21 100 Textbooks 10 120 1,200 150 180 Total cost 1,900 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by Between 2018 and 2019, the CSPI increased by Which gf th
- Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017. Perform these same calculations for 2018 and 2019, and enter the results in the following table. 2017 2018 2019 Price Cost Price Cost Price Cost Quantity in Basket (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) (Dollars) Notebooks 8 2 16 4 Calculators 64 64 104 134 Large coffees 150 2. 300 2. Energy drinks 40 120 4 Textbooks 10 80 800 85 105 Total cost 1,300 Price index 100 Suppose the base year for this price index is 2017. In the last row of the table, calculate and enter the value of the CSPI for the remaining years. Between 2017 and 2018, the CSPI increased by %. Between 2018 and 2019, the CSPI increased by 对女图 17 MacBook Air…A simple economy produces only lumber, granola bars, and computers. Annual production of these goods for 3 years are shown below along with their prices. If 2020 is the base year, the value of 2021 production in constant dollars is $ Don't include $ or any commas or spaces in your answer. 2019 2020 2021 Production of lumber (units) Price of lumber ($ per unit) Production of granola bars (units) Price of granola bars ($ per unit) Production of computers (units) Price of computers ($ per unit) 100 120 130 100 120 125 500 600 650 2.50 50 40 50 300 320 350 2.Consider a fictional price index, the College Student Price Index (CSPI), based on a typical college student's annual purchases. Suppose the following table shows information on the market basket for the CSPI and the prices of each of the goods in 2017, 2018, and 2019. The cost of each item in the basket and the total cost of the basket are shown for 2017.