Suppose that all social programs simultaneously become more generous. In particular suppose that there is an increase in UI benefits, and also an increase in welfare benefits, which are represented in the DMP model as payments to everyone who is not in the labor force. What will be the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, the aggregate output, and the labor market tightness?
Answer to relevant QuestionsIn the Malthusian model, suppose that the quantity of land increases. Using diagrams determine what effects this has in the long-run steady state and explain your results.Consider a numerical example using the Solow growth model. Suppose that F(K, N) = K0.5 N0.5, with d = 0.1, s = 0.2, n = 0.01, and z = 1, and take a period to be a year.(a) Determine capital per worker, income per capita, and ...Determine the effects of a decrease in the population growth rate on the golden rule quantity of capital per worker and on the golden rule savings rate. Explain your results.In the endogenous growth model, suppose that there are three possible uses of time. Let u denote the fraction of time spent working, s the fraction of time spent neither working nor accumulating human capital (call this ...Suppose that all consumers are identical, and also assume that the real interest rate r is fixed. Suppose that the government wants to collect a given amount of tax revenue R, in present value terms. Assume that the ...
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