Reference no: EM131133112
Taxes, oil prices, and workers Everyone in the labor force is concerned with two things: whether they have a job and, if so, their after-tax income from that job (i.e., their after-tax real wage). An unemployed worker may also be concerned with the availability and amount of unemployment benefits, but we will leave that issue aside for this problem.
a. Suppose there is an increase in oil prices. How will this affect the unemployment rate in the short run and the medium run? How will it affect the real wage (W/P)?
b. Suppose there is a reduction in income taxes. How will this affect the unemployment rate in the short run and the medium run? How about the real wage? For a given worker, how will after-tax income be affected?
c. According to our model, what policy tools does the government have available to increase the real wage?
d. During 2003 and 2004, oil prices increased more or less at the same time that income taxes were reduced. A popular joke at the time was that people could use their tax refunds to pay for the higher gas prices. How do your answers to this problem make sense of this joke?
|
Termination through starvation
: Unit VIII Essay Compose an essay explaining "termination through starvation." Discuss the role that ego, power, and politics play in this form of termination. Your essay should consist of no less than three pages, and all references and in-text c..
|
|
Derive the expected value and variance of each estimator
: Derive the expected value and variance of each estimator. Compare the properties of these estimators in terms of unbiasedness, efficiency, and consistency
|
|
Explain the reasons that a small business might fail
: Explain the reasons that a small business might fail and- explain the factors/characteristics that contribute toward small business success.
|
|
Find challenging in completing the scenario
: Start your paper by giving a brief summary of the scenario. Then identify the problemat hand. Write a couple of paragraphs that critically evaluate the three possible solutions(describe advantages and disadvantages of each). Doing this will help ..
|
|
How will after-tax income be affected
: Suppose there is an increase in oil prices. How will this affect the unemployment rate in the short run and the medium run? How will it affect the real wage (W/P)?
|
|
What happens to the unemployment rate in the short run
: What should the Fed do to prevent the unemployment rate from changing in the short run? Show how the Fed's action, combined with the decline in business confidence, affects the AS-AD diagram in the short run and the medium run.
|
|
What body of law should the court apply to given transaction
: The contract contained a provision stating that the UCC of the State of Oregon shall govern this transaction.- What body of law should the court apply to this transaction?
|
|
Causes of the italian renaissance
: Did ancient Greek and Roman history influence Machiavelli's theories? Be sure to refer to direct examples from the text and what were the main causes of the Italian Renaissance?
|
|
What body of law applies to given transaction
: Byron, a law student, needed a pen to write an exam. - Sarah, another law student, sold him spare pen for $1.29.- What body of law applies to this transaction?
|