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evablogger [386]
3 years ago
14

Use the WS and PS relations to examine the effects of the following events on the natural rate of unemployment and on the real w

age. Be sure to explain the effects of the event on the WS and PS relations. Do not post problem sets on other places.
a. A new U.S. trade policy with a hope to protect American workers decreases international trade and makes product markets less competitive in the U.S.
b. A new law that bans the formation of labor unions has been passed.
Business
1 answer:
MrRa [10]3 years ago
6 0

Answer:

Attached below is the WP and WS graph

A) since the new U.S trade policy decreases international trade and makes product markets less competitive in the U.S . hence this affects the PS equation and PS curve.   PS curve ( W/P ) = 1 ( 1 + u ) . here U > 0 due to the decrease in market competition. hence the PS curve will shift downward from PS to PS’ and the equilibrium points will shift from A to A’. while the real wage will be lower i.e. from r to r’  and the natural rate of unemployment will be higher i.e. from Un to Un'   ( image 1 )

B) When the new law that bans the formation of labor unions has been passed the power of the union  weakens and this will affect  wage setting (WS) curve.  Hence The WS curve will shift leftward from WS to WS’ also, the equilibrium point will change from B to B’. Since the PS curve is horizontal, at this new level of equilibrium, the real wages will remain unchanged, while the natural rate of unemployment will be reduced from Un to Un’.

Explanation:

A) since the new U.S trade policy decreases international trade and makes product markets less competitive in the U.S . hence this affects the PS equation and PS curve.   PS curve ( W/P ) = 1 ( 1 + u ) . here U > 0 due to the decrease in market competition. hence the PS curve will shift downward from PS to PS’ and the equilibrium points will shift from A to A’. while the real wage will be lower i.e. from r to r’  and the natural rate of unemployment will be higher i.e. from Un to Un'   ( image 1 )

B) When the new law that bans the formation of labor unions has been passed the power of the union  weakens and this will affect  wage setting (WS) curve.  Hence The WS curve will shift leftward from WS to WS’ also, the equilibrium point will change from B to B’. Since the PS curve is horizontal, at this new level of equilibrium, the real wages will remain unchanged, while the natural rate of unemployment will be reduced from Un to Un’.

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<h3 /><h3>How does expansionary monetary policy affect trade?</h3>
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What effect does an expansionary monetary policy in the u.s. have on the foreign trade sector?

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Answer: the correct answer would be <u>Profit center.</u>

Explanation:

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1 year ago
Starbucks has signed a contract with a television production company to have its brand featured prominently in a new situation c
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Explanation:

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3 years ago
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Novay_Z [31]

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Explanation:

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3 years ago
Bramble Corp. reported net sales of $248,700, cost of goods sold of $146,900, operating expenses of $58,000, net income of $39,9
juin [17]

Answer:

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Explanation:

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net sales = $248,700

cost of goods sold = $146,900

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to find out

profit margin and gross profit rate

solution

we will apply here profit margin formula that is

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put here value

profit margin = \frac{39900}{248700} * 100  

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and

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