With the aid of a competitive labor market diagram, discuss how
wagesrate and unemployment level are determined in a labor market.
ensure that you discuss the details of your diagram , the demand
and supply curve , equilibrium , disequilibrium and shifts of its
demand and supply curve
1.
Describe the Unemployment among the different age groups.
Describe the Unemployment among different races. Describe
Unemployment based on education. Describe the current
Unemployment's effect on society and the economy in the long
run.
You are in charge of recommending a new economic policy
that will directly decrease the future's unemployment rate. Explain
what your policy would look like.
Describe your timeline for effect on unemployment rates;
will it be right away, or will it be a long-term solution?
Why?
What are three developments that can prevent the labor market
from operating at a natural unemployment? Hint: one is created by
government, one is created by the actions of an institution, and
one is created by businesses acting in their own best interest
What problems does the Bureau of Labor & Statistics face in
measuring unemployment?
Discuss the three problems that make the consumer price index
and imperfect measure of the cost of living.
What problems does the Bureau of Labor & Statistics face in
measuring unemployment? Discuss the three problems that make the
consumer price index an imperfect measure of the cost of
living.
2. Draw a graph of the labor market that shows the impact of
reduction in labor demand for two cases (a) wages are perfectly
flexible, and (b) wages are perfectly inflexible (do not change).
Show what happens to labor hours in both cases, and to wage in both
cases. Label everything clearly.
a-explain the existence in involuntary unemployment in the labor
market withEfficiency Wage Theory.
b-employment level that you found same at the full employment
level indicated in classical labor market theory
c- ın keynesyen theory ıf consumers and ınvestor be possimist
what would be effect on output ınterest rate and price level?
Distinguish between the short run and the long run effects by using
the IS-LM-FE and AD-AS models and the effective labor demand
theory.
Discussion Questions:
Discuss the different types of unemployment that exist in the
economy.
Explain what is participation rate in the labor force?
How much does the labor force participation rate affect the
unemployment rate?
Do you think one type of unemployment is worse than others and
why?
What can governments do to assist in reducing this type of
unemployment?
Calculations:
Table 1.0 below provides nominal GDP, real GDP and GDP deflator
data.
(a)
Complete Table 1.0
(b)
What is...
Explain the different types of unemployment and their relationship
to the natural rate of unemployment and full employment. Include in
your analysis the three key indicators that describe the state of
the labor market of an economy.
How
is unemployment related to equilibrium and disequilibrium in labor
market? What functions does unemployment play in the operation of
labor markets?