Use the labor market model to analyze the effects of the following shocks on real wages...

 

 
 

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Use the labor market model to analyze the effects of the following shocks on real wages and unemployment. In each case, show your answer graphically, and explain what variable in wage- or price- setting is affected by the shock (z, m, u, etc.). a. The Federal Trade Commission allows Amazon to acquire Whole Foods. b. There is the following long-term trend in unionization rates in the U.S. economy. c. There are the following trends in the real and nominal federal minimum wage in the U.S. economy. [Hint: should your answer refer to the real or the nominal minimum wage?). Figure I: Unionization rates in the U.S. economy (1983 to 2017) S 1987 1989 191 1993 1998 197 19 2001 203 00s 207 20 S013 20 27 Total unin eership ivate ctor unimied Source: Burcau of Labor Statistics, labor force statistics (Table 3: Union affiliation of employed wage and salary workers by occupation and industry). Pecent Figure 2: The federal minimum wage in the U.S. economy (1938 to 2017) 198 S 19 19 1 1s 1 19 193 1ss 19 200 2 2013 Nominat minimum wage truent dellan Real minimem wage trestant 2017 dullan Source: Federal Reserve Bank of St. Louis; Federal Minimum Wage under the Fair Labor Standards Act (U.S. Department of Labor). Use the labor market model to analyze the effects of the following shocks on real wages and unemployment. In each case, show your answer graphically, and explain what variable in wage- or price- setting is affected by the shock (z, m, u, etc.). a. The Federal Trade Commission allows Amazon to acquire Whole Foods. b. There is the following long-term trend in unionization rates in the U.S. economy. c. There are the following trends in the real and nominal federal minimum wage in the U.S. economy. [Hint: should your answer refer to the real or the nominal minimum wage?). Figure I: Unionization rates in the U.S. economy (1983 to 2017) S 1987 1989 191 1993 1998 197 19 2001 203 00s 207 20 S013 20 27 Total unin eership ivate ctor unimied Source: Burcau of Labor Statistics, labor force statistics (Table 3: Union affiliation of employed wage and salary workers by occupation and industry). Pecent Figure 2: The federal minimum wage in the U.S. economy (1938 to 2017) 198 S 19 19 1 1s 1 19 193 1ss 19 200 2 2013 Nominat minimum wage truent dellan Real minimem wage trestant 2017 dullan Source: Federal Reserve Bank of St. Louis; Federal Minimum Wage under the Fair Labor Standards Act (U.S. Department of Labor).

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The paysetting curve which illustrates the wage associated with each unemployment rate is the result of the wagesetting process across all enterprises in the economy The demand for commodities and the ... View the full answer