What does the DMP model predict would be the effects of labor-saving devices in the home, for example dishwashers, washing machines, and vacuum cleaners? Use diagrams to show the effects on the unemployment rate, the vacancy rate, the labor force, the number of firms, aggregate output, and labor market tightness, and discuss your results.
Answer to relevant QuestionsSuppose the government's goal is to reduce the unemployment rate. Some legislators propose that the government should give a subsidy s to any firm that hires a worker. Some other legislators argue that it would be more ...In 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.Alter the Solow growth model so that the production technology is given by Y = zK, where Y is output, K is capital, and z is total factor productivity. Thus, output is produced only with capital.(a) Show that it is possible ...Suppose that there are two countries with different levels of total factor productivity, and that these differences exist because of barriers to technology adoption in the low-productivity country. Also suppose that these ...An employer offers his or her employee the option of shifting x units of income from next year to this year. That is, the option is to reduce income next year by x units and increase income this year by x units.(a) Would the ...
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