The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

Question

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Answer 1

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

a)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

b)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

c)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

d)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

e)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

f)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

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Answer 2

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

a)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

b)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

c)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

d)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

e)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

f)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

a)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

b)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

c)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

d)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

e)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

f)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

a)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

b)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

c)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

d)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

e)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

f)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

a)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

b)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

c)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

d)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

e)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

f)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

Answer 6

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

a)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

Answer 7

Chapter 13, Problem 1QAP

a)

To determine

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

Answer 8

a)

Expert Solution

Answer to Problem 1QAP

True

Answer 9

a)

Expert Solution

Answer 10

a)

Expert Solution

Answer 11

Expert Solution

Answer 12

Explanation of Solution

Economic information of the US economy since the beginning of the 20^t^h century provides enough evidence as to how technological progress has increased the level of employment. During such time, the per capita output of the nation has increased by a good 7 times. At the same reference period, the employment level has also risen 5 times. As this proves technological progress to be enhancing employment, the statement could be considered as false.

Answer 13

Economics Concept Introduction

Introduction:Technical progress in any country is said to be enhancing employment levels. Since the beginning of the 20^t^h century, many technical advancements have taken place worldwide, reshaping the economies all over.

Answer 14

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

b)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

Answer 15

b)

To determine

The validity of the statement that creative destruction would be equally benefited by workers.

Answer 16

b)

Expert Solution

Answer to Problem 1QAP

False

Answer 17

b)

Expert Solution

Answer 18

b)

Expert Solution

Answer 19

Expert Solution

Answer 20

Explanation of Solution

It cannot be said that all workers receive equal benefits via the process of creative destruction. For example, blacksmiths lost their profession due to creative destruction. Although some professions benefitted immensely through this, some had to immensely suffer on the other hand. Hence, the statement could be considered as false.

Answer 21

Economics Concept Introduction

Introduction:Creative destruction could be defined as the process that demolished the conventional professions or ways and means of doing certain professions. They were replaced with the so called innovative methods. It is subject to debate as to how acceptable this process is.

Answer 22

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

c)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

Answer 23

c)

To determine

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

Answer 24

c)

Expert Solution

Answer to Problem 1QAP

True

Answer 25

c)

Expert Solution

Answer 26

c)

Expert Solution

Answer 27

Expert Solution

Answer 28

Explanation of Solution

The statement could be considered as true as there had been declines in the real wage levels of low skilled workers in the US. On the contrary, real wages of skilled workers have shown an increase. The said changes in two opposite directions have been instrumental in widening the gap of real wages between high and low skilled workers.

Answer 29

Economics Concept Introduction

Introduction:Real wage is an important concept that is widely spoken of in economics. It is the actual purchasing power of the wage received by an employee. In other words, rather than the amount received in cash, the real wage states the actual amount of goods and services that could be purchased with it.

Answer 30

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

d)

Expert Solution

Answer to Problem 1QAP

True

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

Answer 31

d)

To determine

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

Answer 32

d)

Expert Solution

Answer to Problem 1QAP

True

Answer 33

d)

Expert Solution

Answer 34

d)

Expert Solution

Answer 35

Expert Solution

Answer 36

Explanation of Solution

The statement could be considered as true as technological progress in deed reduces employment under the condition that the increase in the level of productivity is beyond the increase in the output level. As workers would be paid wages that are in line with their productivity levels, there would be an increase in real wages. If the increase in real wages exceed the increase in the level of output, there would be unemployment. However, this is considered as an issue that must be faced in the short run.

Answer 37

Economics Concept Introduction

Introduction:Technological progress in general is considered to be reducing the level of unemployment. As these concepts are much important in economic analysis, it is worthwhile looking into the relevant conditions under which this would be so.

Answer 38

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

e)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

Answer 39

e)

To determine

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

Answer 40

e)

Expert Solution

Answer to Problem 1QAP

False

Answer 41

e)

Expert Solution

Answer 42

e)

Expert Solution

Answer 43

Expert Solution

Answer 44

Explanation of Solution

The statement could be considered to be false. As stated above, an unusual increase in the level of aggregate output is what has caused the natural unemployment to come down during the reference period. The aggregate output growth has been higher than the productivity growth at the latter stage of the 20^t^h century. This has led organizations to recruit more staff. Thus, natural unemployment has declined.

Answer 45

Economics Concept Introduction

Introduction:It is said that an unusually high growth rate in the aggregate output has been the reason as to why the natural rate of unemployment has declined in the second half of the 20^t^h century in the economy of the US.

Answer 46

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

f)

Expert Solution

Answer to Problem 1QAP

False

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

Answer 47

f)

To determine

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

Answer 48

f)

Expert Solution

Answer to Problem 1QAP

False

Answer 49

f)

Expert Solution

Answer 50

f)

Expert Solution

Answer 51

Expert Solution

Answer 52

Explanation of Solution

The statement could be considered as false. A technological progress cannot bring down the level of natural unemployment. However, there would be possible changes in natural unemployment that has been caused by features such as higher savings. Nevertheless, technological progress being the driver of growth in the long run, the economy is more likely to be stagnant. This, in turn shall make natural unemployment constant or decrease depending on the population’s growth rate.

Answer 53

Economics Concept Introduction

Introduction:Natural rate of unemployment refers to the percentage of unemployment resulting from the structural features of an economy. In other words, it is the minimum level of unemployment an economy could have.

Answer 54

Ch. 13 - Prob. 1QAP Ch. 13 - Prob. 2QAP Ch. 13 - Prob. 3QAP Ch. 13 - Prob. 4QAP Ch. 13 - Prob. 5QAP Ch. 13 - Prob. 6QAP Ch. 13 - Prob. 8QAP Ch. 13 - Prob. 9QAP

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

The validity of the statement that the ideology of technical progress leading to solid increases in employment is supported by the changes in employment as well as per capita output in the US after 1900.

Answer to Problem 1QAP

Explanation of Solution

The validity of the statement that creative destruction would be equally benefited by workers.

Answer to Problem 1QAP

Explanation of Solution

The validity of the statement that the real wage levels of workers with low skills have declined as compared against that of high skilled workers in the US across the past two decades.

Answer to Problem 1QAP

Explanation of Solution

The validity of the statement that technological progress creates a decline in employment only if the output increase is below the productivity increase.

Answer to Problem 1QAP

Explanation of Solution

The validity of the statement that the reduced level of natural unemployment that occurred during the latter half of the 1990’s is possible to be explained by the unexpectedly high productivity growth in the US economy during such period.

Answer to Problem 1QAP

Explanation of Solution

The validity of the statement that if technological progress could be stopped, the natural rate of unemployment would decline as a result.

Answer to Problem 1QAP

Explanation of Solution

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