Not a member of Pastebin yet?
Sign Up,
it unlocks many cool features!
- Link1) https://media.cheggcdn.com/media/ac8/ac8563aa-fb67-4de7-9adf-86ebb0235b2f/phpfz9FAC.png
- https://media.cheggcdn.com/media/b49/b49d24bc-191e-4cdf-ae9e-63dc679049b8/phpoM800v.png
- https://media.cheggcdn.com/media/ffc/ffce8ad2-2716-4c22-801d-9943aa21d0db/php0mampM.png
- Money supply is 12.5 times the monetary base.
- Link2)
- Yes it is possible . A technological advancement can make machines more efficient or the invention of labor saving technologies . In such cases production is done using machines that replace manual labor . Fewer people are required to operate such machines . So unemployment rises . Reduction in input prices , such as reduction in price of capital goods ( machines , automatic system of production etc ) causes producers to employ more capital and less labor as fall in prices of capital means more marginal product per penny invested in capital . Thus here also unemployment rises .
- https://media.cheggcdn.com/media/0d3/0d3dacd3-82e7-4399-b86d-f26717a0b8d0/phpTWSJpR.png
- A minimum wage acts like a price floor . It does not allow the wage rate to fall to equilibrium . This causes quantity of labor supplied to be higher than demanded . So unemployment occurs . When there is reduction in minimum wage the wage rate falls and moves closer to equilibrium . This causes quantity of labor demanded to increase and supply to shrink . Thus the gap shown in the figure above is reduced . Unemployment level falls in the economy , more workers are employed . Employment rate will be equal to labor demanded .
- Link3)
- https://media.cheggcdn.com/media/798/798de990-b4d9-4734-990c-cbc251562573/phpgBUcpL.png
Advertisement
Add Comment
Please, Sign In to add comment