Explain the process of the long-run response of an economy to a technological progress using the...
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Explain the process of the long-run response of an economy to a technological progress using the diagram Output per worker (new technology) Output per worker. (old technology) Real wage (new) Real wage (old) Real wage HE Profit curve (new technology) Profit curve (old technology) 04 A/E 5 Wage curve 6% unemployment 4% unemployment rate (Long-run rate New long-run unemployment rate) unemployment rate, Employment. N Explain the process of the long-run response of an economy to a technological progress using the diagram Output per worker (new technology) Output per worker. (old technology) Real wage (new) Real wage (old) Real wage HE Profit curve (new technology) Profit curve (old technology) 04 A/E 5 Wage curve 6% unemployment 4% unemployment rate (Long-run rate New long-run unemployment rate) unemployment rate, Employment. N
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In the long run firms will respond to profits through a process of entry where existing firms expand output and new firms enter the market Conversely ... View the full answer
Related Book For
Macroeconomics Principles, Applications, and Tools
ISBN: 978-0132555234
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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