Macroeconomics Answers

How did the substitution effect created by a decrease in wage level affect the labor demand?

What are the factors that make labor cheap in a country? What are the possible bad and good effects of the decrease in wage levels in a country? And What are the factors that increase the company’s revenue from its sales?

What are relative advantages, of a growth path based on relatively cheap capital, and a growth path based on cheap labor and a demand-driven growth?

What are the factors, that might make economic growth and with it the employment creation within a country easier?

Why in classical model aggregate output remains constant and aggregate supply also remains vertical ?
How we can increase output in classical model ?

. The United Kingdom (UK) held a national referendum (vote) on whether the UK should remain in the European Union (EU), or should exit the EU. Exiting the EU is likely to have several consequences: (1) increased barriers to trade between the UK and the remaining EU countries; (2) Reduced refugee flows.

Use the AS/AD model to describe the short run and long run effect of the UK exit from the EU

The price of oil is $30 per barrel and the price elasticity is constant and equal to -0.5. An oil embargo reduces the quantity available by 20 percent. Use the arc elasticity formula to calculate the percentage increase in the price of oil.

According to mainstream economics, unemployment can exist, even when the labor market is at
equilibrium. How do the economists who are part of neoclassical school explain, the existence of
unemployment, at an instance when labor demanded and labor supplied are equal to each other?

Write a factor that may increase wage level of an occupation.

Starting with 1980’s economists within the neoclassical school have increasingly emphasize the
necessity of having a flexible labor market. One of the characteristics of the flexible labor market is increased level of mobility between sectors and occupations. Write a factor that can increase this kind of mobility within the labor market.