Saw increasing wages and increasing worker productivity

Assignment Help Business Economics

Reference no: EM131096476

In the late 1990s, the U.S. economy consistently saw increasing wages and increasing worker productivity.

A. If wages rise, how does aggregate supply change?

B. If productivity rises, how does aggregate supply change?

C. Can you determine the net effect of increases in both workers' wages and workers' productivity? How could you look at the economy and determine which (if either) of the two effects dominates the other, ceteris paribus?

Reference no: EM131096476

Questions Cloud

Producing the value of the nation output are equivalent : All incomes received in producing the value of the nation's output are equivalent to the total spending made on the final goods and services.

Policy changes have on measured wage inequality : What effect do you believe the following proposed policy changes have on measured wage inequality?

About the growing wage inequality : Politicians are concerned about the growing wage inequality in the United States caused by a substantial increase in the returns to college education. A senator is proposing a law that would give firms a subsidy to buy additional capital. How might t..

Adjust your purchase of peanut butter : You are the manager of a supermarket, and you know that the income elasticity of peanut butter is exactly −0.5. Due to the economic recession, you expect incomes to increase by 10 percent next year. How should you adjust your purchase of peanut butte..

Saw increasing wages and increasing worker productivity : In the late 1990s, the U.S. economy consistently saw increasing wages and increasing worker productivity. If wages rise, how does aggregate supply change? If productivity rises, how does aggregate supply change?

Taxes to affect real output and the price level : Governments sometimes try to change government spending or taxes to affect real output and the price level. If the government wants to use either government spending or taxes paid by households to increase aggregate demand, how should G change and ho..

Pay for the acquisition and construction of public parks : Suppose that a city mayor proposes to pay for the acquisition and construction of public parks by implementing a 7-year local sales tax. Someone argues that the financing mechanism should instead be something that is spread out over more time, noting..

Targeted jobs tax credit-tax credit have affected wages : The Targeted Jobs Tax Credit (TJTC) – enacted in 1978 and expired in 1994 – offered employers a tax credit for each less-skilled worker they employed. Assume that the tax credit was fixed at $5 per-hourworked by a less-skilled worker. According to ne..

Marginal cost of producing extra unit of microprocessor : Two microprocessor manufacturers, one in Japan, one in US selling products to only the US customers. Initially, 1 US dollar equals to 100 Yen (e = 100 Y/$) and the market price for a microprocessor is $20. The marginal cost of producing an extra unit..

User Account

All Pages