Impact of loan on real wages

Assignment Help Macroeconomics
Reference no: EM1313002

Suppose the World Bank provides a poor country with equipment on indefinite loan.

a) What is the effect on the real wage and hours worked in the short run?
b) What is the effect on the real wage and hours worked in the long run? Explain your answers.

Reference no: EM1313002

Questions Cloud

Activity after inhaling of 1000 bq : An activity of the 1000 Bq of a class-W aerosol (AMAD = 1 micrometer) is inhaled in the single intake:In accordance with the ICRP-30 model for respiratory system state the initial activity deposited in the compartment e.
Utility function for consumption and leisure : If the government starts welfare policy which pays B to all non workers and 0 to all workers, at what value of B will Mike opt out of the labor force and go on welfare?
Result of intake of a radionuclide : As a result of single intake of 6.3x10^3 Bq of a radionuclide, a particular organ will receive doses of the 0.2 mGy from a low energy beta particles and 0.05 mGy from the alpha particles during next 50 y.
Calculating magnetic flux, induced current & magnetic field : Calculating magnetic flux, induced current & magnetic field.
Impact of loan on real wages : Write down the effect on the real wage and hours worked in the short run.
Developing countries and impact on wage : Suppose that rich countries surprisingly commit to much higher official aid, to be maintained for several decades. What would be the effect of such aid on?
Required speed to push the box : You & your friend peter are putting new shingles on a roof pitched at 25 degrees. You are sitting on the very top of the roof when peter, who is at the edge of the roof directly below you, 5.1m away, asks you for the box of nails. Rather than carr..
The acceleration of the block : he lower block in the figure is pulled on by a rope with a tension force of 20 N. The coefficient of kinetic friction between the lower block & the surface is 0.30. The coefficient of kinetic friction between the lower block & the upper block is a..
Current & magnetic induction in the electrical circuits : Current & magnetic induction in the electrical circuits.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd