1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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’.

You might be interested in
Insurance is the way a person or business is protected from :
nevsk [136]

Answer:

losing money

Explanation:

Helps save you from the out of pocket expense if something bad were to happen.

For example if your roof was damaged by a natural disaster it could cost thousnads of dollars out of a persons pocket.

Insurance will pay the cost to repair it allowing you to be protected from losing money.

3 0
2 years ago
At a price of $60 per bathing suit, what is the quantity demanded of bathing suits?
timofeeve [1]

Answer:

Explanation:

I think your question is missed of key information, allow me to attach the photo question below.

The quantity demanded is 30 units when the price is 60, we use the reconciliation method on the demand line.

3 0
3 years ago
a college in a metropolitan area wishes to increase its evening offerings of business-related courses such as marketing, account
SSSSS [86.1K]

Answer:

Target markets are management and business students looking forward for employment and full year courses.

Explanation:

  • The target market can be those who are working full time in the day and may also include the small and medium business owners that intend to provide some sort of online cloud computing set up for the college, and
  • It may be the students that want to continue their higher education and pursuing a full degree. These may also include the off-campus students that are interested in doing professional courses.
5 0
3 years ago
Jacob Company sold a $1,000 par value, non-callable bond that has 20 years to maturity and a 7.00% annual coupon that is paid an
ratelena [41]

Answer:

4.64%

Explanation:

5 0
3 years ago
he Yachtsman Fund had NAV per share of $36.12 on January 1, 2016. On December 31 of the same year, the fund's NAV was $39.71. In
photoshop1234 [79]

Answer: 14.84%

Explanation:

To calculate the rate of return the investors received we will do a simple return formula to find out by how much, in terms of the Opening NAV, the fund has increased.

To find out how much the fund has increased by we can add up all the figures then deduct the opening balance.

= 39.71 + 0.64 + 1.13 - 36.12

= $5.36

$5.36 is the how much the fund has increased by.

Expressing it in percentage of the opening NAV per share we have,

= 5.36/36.12

= 0.14839424141

= 14.84%

14.84% is the rate of return that an investor received on the Yachtsman Fund in 2016.

7 0
3 years ago
Other questions:
  • An overstatement of ending inventory at the end of the current period will cause an overstatement of assets and an understatemen
    6·1 answer
  • The technological advancement allowing for _____ has created a potential for inappropriate access and/or misuse of information.
    11·2 answers
  • Jensen Co. expects to pay €50,000 in one month for its imports from France. It also expects to receive €200,000 for its exports
    6·1 answer
  • A formal agreement between separately owned and controlled facilities to officially coordinate and share certain activities is m
    12·1 answer
  • Which type of employees typically work in an office environment within schools
    6·1 answer
  • Using the high-low method and the Millco data above, what is the approximate fixed cost component of the monthly maintenance cos
    10·1 answer
  • Changes in financial reporting methods unquestionably will alter the resulting measures of financial positions reported in finan
    6·1 answer
  • what is the role of advertising in increasing and decreasing economic well being, by giving examples from pakistani market, expl
    9·1 answer
  • why was slavery more successful than other labor systems in meeting the labor needs of the colonial america market economy
    8·1 answer
  • I am so coufued "what i am going to in future, i am very good in art and math and cooking and pe?
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!