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!
Supply of labor, LS (W/P), depends positively on real wages in classical model. It isn't always clear which individuals are included in the labor supply. Labor supply may consist of only individuals in the workforce or it may have a wider definition including individuals which are outside the labor force though would like to work if they could find a job. The second category may comprise so-called 'discouraged workers' and individuals which are in school but who would rather work.
Keynesian labor supply differs from classic labor supply in that it includes individuals which are outside the workforce. Thus for a given real wage, Keynesian labor supply is larger than the classic labor supply. Though Keynesian labour supply is still a positive function of the real wage.
Demand for labor LD (W/P) is the same as for classical model. It is derived from marginal product of profit maximizing firms. Following graph illustrates the classical labor supply, Keynesian labor supply and labor demand.
Figure: Classical and Keynesian labor supply
Note that for classical equilibrium real wage, Keynesian supply exceeds the demand. In Keynesian models, we don't presume that real wage will be equal to the equilibrium real wage. The labor market need not be in equilibrium in the classical sense. Though in the Keynesian models, real wage is such that there is always an excess supply of labor (using the Keynesian supply).
How have you responded to increases in the price of gasoline over the past few years? How would you respond if the price of gasoline doubled over the next two years? What alternati
whwt is the difference between the fixed accelerator and the flexible accelerator theories of investment?
what measures should be taken to raise the productivity of the workers?
what goals and policies are being discused to address the crowding out effect?
compare and contrast the monetarism economics and the keynesian economics
Q. Determine the Exchange rate? Exchange rate is determined by the ratio of domestic price level to the foreign price level. If, for instance domestic prices increase by 10% wh
This problem substitutes financial health with housing in a 2 period consumption savings model. The representative consumer has the utility function u(c1, c2) = lnc1 + lnc2 with ea
What is the difference between economic growth and economic development? Growth is only individual dimension of development. Economic development is a complicated multi-dimensio
Which of the following will cause property crime to increase? a) An increase in jail terms. b) A decrease in personal incomes. c) An increase in the probability of arrest.
Determine the rate of economic growth in UK With regard to economic growth, a good starting point for evaluation and analysis is the fact that rate of economic growth in UK has
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd