Exam 13: Technological Progress: the Short, the Medium, and the Long Run

For this question,assume that expectations of productivity growth adjust slowly.Now,suppose that there is a 5% increase in productivity.Explain how this 5% increase in productivity can cause changes in the unemployment rate.

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Question 1

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The PS curve will shift up as productivity growth occurs; however,it will now shift up by a greater amount.If expectations of productivity are slow to adjust,the WS curve continues to shift up by a smaller amount (based on past increases in A).The real wage will rise by the actual change in productivity.The unemployment rate will,however,decrease because of the smaller shift in the WS curve.

Suppose an economy experiences a reduction in productivity.Explain both the short-run and medium-run effects of this reduction in productivity on output,employment,and the unemployment rate.

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In both the short run and medium run,TP will cause a reduction in output (assuming,of course,that any change in AD,if it occurs,is offset by the shift in the AS curve).What happens to employment in the medium? Given that Y will fall by the full change in TP in the medium,we know that N and u will not be affected in the medium run.In the short run,N will fall and u will rise if the percentage change in Y is less than the percentage change in TP.

The number of workers employed will not change as a result of an increase in productivity when which of the following occurs?

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Question 3

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The evidence suggests that recent technological change

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Question 4

Which of the following is not true about technological progress?

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Question 5

Based on price setting behavior,which of the following will cause an increase in the price level?

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Question 6

When the production function is represented by Y = NA,labor productivity is represented by which of the following expressions?

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Question 7

For this question,assume that expectations of P and A are correct.Based on price setting behavior,the real wage will be equal to which of the following?

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Question 8

Which of the following is not believed to cause recent increases in wage inequality?

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Question 9

Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough.Given this information,we would expect which of the following to occur?

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Question 10

When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis,a reduction in productivity will cause which of the following to occur?

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Question 11

For this question,assume that the aggregate production function is represented by Y = AN.Which of the following represents the price setting relation for this economy?

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Question 12

Some commentators will argue that increases in productivity may have no effect or even a negative effect on employment in the short run.Explain what must occur for an increase in productivity to have no effect or even a negative effect on employment in short run.

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Question 13

For this question,assume that expectations of productivity growth adjust slowly.Now,suppose that there is a 3% reduction in productivity.Explain how this 3% reduction in productivity can cause changes in the unemployment rate.

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Question 14

There are some concerns that technological progress can lead to an increase in unemployment.Explain the two related but separate dimensions of technological progress.

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Question 15

For this question,assume that expectations of P and A are correct.Now suppose that there is a 4% increase in A.Given this information,which of the following will occur?

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Question 16

Suppose an economy experiences an increase in technological progress.This increase in technological progress will

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Question 17

Based on our understanding of the wage setting equation,which of the following will not cause a reduction in the nominal wage?

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Question 18

Assume an economy experiences,for a given period,a 5% increase in output and a 1% increase in productivity.Given this information,we know that which of the following occurred for this economy during this period?

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Question 19

In recent years,the increasing relative wage of skilled labor has been mostly due to

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Question 20

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Exam 13: Technological Progress: the Short, the Medium, and the Long Run

For this question,assume that expectations of productivity growth adjust slowly.Now,suppose that there is a 5% increase in productivity.Explain how this 5% increase in productivity can cause changes in the unemployment rate.

Suppose an economy experiences a reduction in productivity.Explain both the short-run and medium-run effects of this reduction in productivity on output,employment,and the unemployment rate.

The number of workers employed will not change as a result of an increase in productivity when which of the following occurs?

The evidence suggests that recent technological change

Which of the following is not true about technological progress?

Based on price setting behavior,which of the following will cause an increase in the price level?

When the production function is represented by Y = NA,labor productivity is represented by which of the following expressions?

For this question,assume that expectations of P and A are correct.Based on price setting behavior,the real wage will be equal to which of the following?

Which of the following is not believed to cause recent increases in wage inequality?

Assume an economy experiences an increase in productivity that occurs as a result of a more widespread implementation of a major technological breakthrough.Given this information,we would expect which of the following to occur?

When the unemployment rate is on the horizontal axis and the real wage is on the vertical axis,a reduction in productivity will cause which of the following to occur?

For this question,assume that the aggregate production function is represented by Y = AN.Which of the following represents the price setting relation for this economy?

Some commentators will argue that increases in productivity may have no effect or even a negative effect on employment in the short run.Explain what must occur for an increase in productivity to have no effect or even a negative effect on employment in short run.

For this question,assume that expectations of productivity growth adjust slowly.Now,suppose that there is a 3% reduction in productivity.Explain how this 3% reduction in productivity can cause changes in the unemployment rate.

There are some concerns that technological progress can lead to an increase in unemployment.Explain the two related but separate dimensions of technological progress.

For this question,assume that expectations of P and A are correct.Now suppose that there is a 4% increase in A.Given this information,which of the following will occur?

Suppose an economy experiences an increase in technological progress.This increase in technological progress will

Based on our understanding of the wage setting equation,which of the following will not cause a reduction in the nominal wage?

Assume an economy experiences,for a given period,a 5% increase in output and a 1% increase in productivity.Given this information,we know that which of the following occurred for this economy during this period?

In recent years,the increasing relative wage of skilled labor has been mostly due to

A Tour of the World

A Tour of the Book

The Goods Market

Financial Markets

Goods and Financial Marketsthe Is-Lm Model

Financial Markets Ii: the Extended Is-Lm Model

The Labor Market

The Phillips Curve, the Natural Rate of Unemployment, and Inflation

From the Short to the Medium Run: the Is-Lm-Pc Model

The Facts of Growth

Saving, capital Accumulation, and Output

Technological Progress and Growth

Financial Markets and Expectations

Expectations, consumption, and Investment

Expectations, output, and Policy

Openness in Goods and Financial Markets

The Goods Market in an Open Economy

Output, the Interest Rate, and the Exchange Rate

Exchange Rate Regimes

Should Policy Makers Be Restrained

Fiscal Policy: a Summing up

Monetary Policy: a Summing up

Epilogue: the Story of Macroeconomics

Appendix

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