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.
Determine the term- GDP per capita GDP, being a flow, isn't a measure of the total wealth of a country though a measure of the "income" of country during a certain period of ti
What happens to the extraction path if the choke price falls
Q. Explain about Penicillic Acid? This mycotoxin has biological properties similar to patulin. It is produced by a large number of fungi, including many Penicillia as well as m
Gross domestic product Definition Perhaps the most significant concept in macroeconomics is Gross Domestic Product (GDP): Gross Domestic Product (GDP) is defined as the
Compare Classical economic theory to Keynesian economic theory. Which approach, if either is the US currently applying and what have been the effects of such policies?
Macroeconomic performance The UK's future macroeconomic performance must be judged on how average living standards improve, inflation is kept under control, economy grows and
What would happen to the US market of new homes, if Bank of America raises interest rates, from 1% to 3%?
Explain the difference between productive and allocative ( economic ) efficiency. Explanation of productive efficiency, e.g. output at AC minimum Define to the effect th
When Sonoma Vineyards reduces the price of its Cabernet Sauvignon from $15 a bottle to $12 a bottle, the result is an increase in a. the demand for this wine b. the supply of
What is the amount of five equal annual deposits that can provide five annual withdrawals, where a first withdrawal of $1500 is made at the end of year six and subsequent withdrawa
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd