Question 1

"Churning" refers to
A)changes in the real wage over the business cycle.
B)changes in the markup over the business cycle.
C)structural change associated with technological progress.
D)the increase in productivity caused by an increase in output.
E) the increase in output caused by an increase in productivity.

Accepted Answer

"Churning" refers to structural changes in the economy that are often associated with technological progress. This process can lead to shifts in employment and industries as new technologies are adopted and old ones become obsolete.

Question 2

Assume expectations of both prices and productivity are accurate,use the PS / WS relations,graphically illustrate and explain the effects of an increase in the productivity on the natural rate of unemployment.

Accepted Answer

The answer of Assume expectations of both prices and productivity...

Question 3

Suppose an economy is characterized by the equations below:
Price setting: P= (1 + m)(W / A)
Wage setting: W=AP(1 - u)
Solve for the natural rate of unemployment if the markup (m)is equal to 4%.

Accepted Answer

The answer of Suppose an economy is characterized by the...

Question 4

Assume expectations of prices are correct but expectations of productivity adjust slowly.Use the PS / WS relations,graphically illustrate and explain the effects of a decrease in productivity growth on the natural rate of unemployment.

Accepted Answer

The answer of Assume expectations of prices are correct but...

Quiz 13: Technological Progress: the Short, the Medium, and the Long Run

"Churning" refers to

Assume expectations of both prices and productivity are accurate,use the PS / WS relations,graphically illustrate and explain the effects of an increase in the productivity on the natural rate of unemployment.

Suppose an economy is characterized by the equations below: Price setting: P= (1 + m)(W / A) Wage setting: W=AP(1 - u) Solve for the natural rate of unemployment if the markup (m)is equal to 4%.

Assume expectations of prices are correct but expectations of productivity adjust slowly.Use the PS / WS relations,graphically illustrate and explain the effects of a decrease in productivity growth on the natural rate of unemployment.