The market supply curve for labor is upward sloping and
the market demand curve for labor is downward sloping yet for a
single firm the demand curve is flat. Explain.
I really dont need the answer, but if someone could explain what
this is asking. I get that the market supply curve slopes upward
and the demand curve slopes downward, but what exactly is the
question getting at when it says a single firm is flat. Is it
referring to...
13. A. Why is the labor demand curve downward sloping? B. Why is
the labor supply curve upward sloping for the market and horizontal
for the firm, and what is the MFC?
Graph a labor supply curve with an upward-sloping labor supply.
Label the vertical axis as “wage rate” and the horizontal axis with
“Quantity of labor”
a. Place these two points on the curve: {wage= $10, quantity =
30} and {wage = $12, quantity = 45}. Calculate the labor supply
elasticity.Label this curve as “Curve A”
b. Now, assume that something has changed the labor supply curve
so that now the line has a different slope. On this new curve are...
1. Explain in your own words why aggregate supply curve is
upward sloping? Include graph with your answers.
2. Explain briefly the four major components of aggregate
demand.
3. Explain in your own words the multiplier effects of
government spending on Aggregate Demand. Include graph with your
answer.
4. Explain in your own words how an increase in aggregate demand
creates inflation. Include graph with your answer.
5. Describe in your own words how bank creates money.
Given downward-sloping demand for labor and upward-sloping
supply of labor, explain if wage increases, decreases, or has an
indeterminate effect if (a) the number of qualified workers
decreases and (b) the number of employers increases. Answer (a) and
(b) as two different cases.
Why is the AD-curve downward sloping?
2. Why is the AS-curve upward sloping in the
intermediate run?
3. True or false? Why?
“Monetary policy does not affect
real output in the Keynesian supply curve model.”
4.“In the classical AS-curve case, an increase in government
spending will increase interest rates and real money balances.”
Comment on this
statement.
5. Comment on the following statement:
“In the classical aggregate supply curve model, the economy is
always at the full-employment level of...