Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Equilibrium in the labor market?
Equilibrium in the labor market
Real wage W/P will be equal to the equilibrium real wage in the classical model
Without trade unions andgovernment intervention, labor market would always be in equilibrium in the classical model. This means that real wage will be equal to equilibrium real wage - the level of real wage that will equilibrate labor demand and labor supply.
Figure: Equilibrium in the labor market
It's also clear from the graph that total amount of labor L is concluded in labor market. When real wage is equal to equilibrium real wage, supply of labor is equal to demand for labor and this is the amount which would be used in the production. We then have full employment.
If real wages are higher than equilibrium real wage, demand for labor would be less than supply. Difference is the amount of unemployment beyond natural rate of unemployment. In equilibrium, there is hence no 'involuntary' unemployment in classical model.
Malaysia’s Bank Negara has cut the country’s economic growth forecast to between 4 and 5 percent for 2012, weighed down by Europe’s economic woes. Discuss ONE (1) demand-management
Determine the current productivity results for the non-farming business sector and the manufacturing sector. Discuss recent productivity and cost trends and make predictions for th
Marginal cost curves generally slope: a) downward because of decreasing opportunity cost b) upward because of decreasing opportunity cost c) downward because of increasing opp
How will each of the following bases for hospital reimbursement affect the number of admissions, the average length of stay, the volume of services per day, and the unit cost of se
In reference to the above question, assume you know the combination of inputs that minimizes cost. What would happen to this input combination if the price of labor increased? What
Q. Determination of GDP in the cross model? In the cross model, GDP is determined as the solution to the equation Y D (Y) = Y We may explain
Imagine Adam Smith living in today's economic climate. Describe what current economic issues about which he might be most concerned with and state why?
MONEY AND CREDIT In any modern economy, the quantity of money, aggregate volume of credit and its sectoral composition are important variables which exert significant influenc
y=c+c1(y-t0-t1y,r)+i+g
An attorney supplies 40 hours of work per week when her fee is $100 per hour but supplies 60 hours of work per week when her fee rises to $120 per hour. Using the midpoint formula,
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd