Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Q. Classical model of the labor market?
We begin by explaining the classical model of the labor market.
The demand for labor LDis assumed to be inversely related to the real wage W/P
Profit-maximizing firms would want to use labor up to the point where marginal product of labor MPL is equal to the real wage W/P. We have previously presumed that MPL is decreasing in L and demand for labor can be explained in the following graph.
Figure: The demand for labor
From the graph you can conclude that aggregate demand for labor, or just the demand for labor depends on the real wage. If the real wage increases, demand for labor decreases and vice versa. For instance, the demand for labor will fall if W increases and/or if P decreases however it won't change if W and P increase by the same percentage.
In the classical model, markets are characterized by perfect competition and firms can't affect W and P. Though, they do decide how much labor to hire. If you sum all the labor that firms want to hire you get total demand for labor.
What do you mean by Gross Domestic Product? Gross Domestic Product: GDP stands for Gross domestic product, measures the value of all concluding goods and services produce
the classical model assumes that consumption depends positively on disposable income. now suppose that consumption also depends on the real interest rate. a) sketch the loanable
Inflation in Germany Once we have monthly data on a price index we can calculate inflation. In most nations, the percentage change in price index during one month is small. So,
discuss modern theory of determination of rent?
An economy shows the following features C=50+0.9(Y-T) T=100 I=100-5i G=100 L=0.2Y-10i M/P=100 X=20 M=10+0.1Y a)Obtain the IS and LM for this economy b)Find out the equilibrium inc
A coil of inductance 0.04H and resistance 10Ω is linked to a 120V, d.c. supply. Determine (a) The ?nal value of current, (b) The time constant of the circuit, (c) The va
This paper empirically analyses the effect of oil price shocks on key macroeconomic indicators in the United Kingdom.The aim of the paper is to establish a relationship between oil
Let the real interest rate, i r , equal 5 percent and the rate of depreciation, d, equal 10 percent. In this case, if the price of a piece of capital is P K = $10,000, what is th
What are the difference between explicit cost and implicit cost? Both are concerns to Opportunity Cost and Decisions: An explicit cost is a cost which involves essentially
Explain how changes in the quality of health care will influence the demand for care.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd