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Task: Individual Report you should answer the question in report form with introduction, main body and conclusion.
The chancellor said employers would be forced to pay staff a minimum of £7.20 an hour from next April 2016, and raise wages by 6% a year on average to around £9 an hour by the end of the year 2020. 1. How this changes in the minimum wage, could possibly affect the unemployment rate? 2. What will be the macroeconomic effects, of minimum wage change in the economy?
Word Limit: 1500 words.
Suppose that the banking system has no excess reserves. Calculate the maximum amount of check-writing deposits when bank reserves total $10,000 and the reserve requirement;
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Using algebra find out the effects of this change in cost on profit maximizing output and the optimal profit.
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