Evaluate nominal wages, Macroeconomics

Assignment Help:

Q. Evaluate Nominal wages?

Nominal wages

W = (W/P).P

The nominal wage is equal to the real wage times the price level.

Because the real wages W/P is determined in labor market and P is determined by quantity theory of money, we can also determine nominal wage in classical model: W = (W/P).P. From the labor market, Say's Law and quantity theory, now we have determined W, P, Y and L. We can also illustrate how all these four are determined concurrently: 

845_Evaluate Nominal wages.png

Figure: Determination of W, P, Y and L


Related Discussions:- Evaluate nominal wages

Define price elasticity of demand, Suppose the price elasticity of demand f...

Suppose the price elasticity of demand for used cars is estimated to be 3 what does this mean?

Unemployment rate for each country, The following Table B presents the 2010...

The following Table B presents the 2010 population, employment, and unemployment data among working age persons for several countries. a. Calculate the number of people in the lab

Functions of commercial bank - buying government securities, Buying ...

Buying government securities: When a commercial bank buys government bonds, the effect is substantially the same as that of lending - new money is created. To

Permanet inocme, if your earning records over year has been:Yt=$40000 Yt-1=...

if your earning records over year has been:Yt=$40000 Yt-1=$38000 Yt-2=34000 Yt-3=$32000 YT-4=31000,What is the your permanet income?

News involving a legal issue, Your Assignment is to find a news article inv...

Your Assignment is to find a news article involving a legal issue that interests you and report on it in the Discussion Board. Please provide a link to the article so that others c

What is price level, The price level is the monetary value of a good or ser...

The price level is the monetary value of a good or service.

What do you mean by the long run outcome, Imagine a firm with the same cost...

Imagine a firm with the same cost structure but in each of the four market structures: Competitive, Monopolistically Competitive, Oligopoly, and a Monopoly. Using the concepts of c

Illustrate the policy - beggar my neighbour, Illustrate the policy - Beggar...

Illustrate the policy - Beggar my neighbour 'Beggar my neighbour' policies are government policies which attempt to gain a competitive benefit at the expense of other countries

Question one hw, A small country can import a good at a world price of 10 p...

A small country can import a good at a world price of 10 per unit. The domestic supply curve of the good is S = 20 + 10P The demand curve is D = 400 – 5P In addition, each unit of

Diversify the business of firm a, The managers of Firm A recommend that Fir...

The managers of Firm A recommend that Firm A purchase Firm B because the purchase will diversify the business of Firm A. Diversification of risks is a desirable strategy for indivi

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd