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

For this question,assume that workers expectations of the price level and productivity are accurate.Now suppose that the economy experiences an increase in productivity.Which of the following will occur in the medium run?

For this question,assume that expectations of productivity are slow to adjust.Further assume that A had been increasing by 2% a year.Now suppose that A increases by 5% in period t.This increase in productivity growth will cause

Some believe that technological progress leads to higher unemployment in the medium run.This claim that technological progress results in an increase in unemployment in the medium is supported by

Suppose the aggregate production function is represented by Y = AN.Which of the following expressions represents the number of additional workers required to increase production by one unit?

Because of labor hoarding,an increase in output may signal

Assume expectations of both prices and productivity are accurate,use the PS / WS relations,graphically illustrate and explain the effects of an increase in the productivity on the natural rate of unemployment.

Explain what effect a reduction in productivity has on wage setting behavior,price setting behavior,the equilibrium real wage,the natural rate of unemployment,and the natural level of output.

Using the AS / AD model,graphically illustrate and explain the short-run and medium-run effects of a reduction in productivity.In your graph,clearly label all curves and equilibria.For simplicity,assume that the change in productivity has no effect on aggregate demand.

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?

Suppose the aggregate production function is represented by the following: Y = AN.Given this information,labor productivity is given by

Suppose workers' and firms' expectations of the price level and productivity are accurate.In this case,an increase in productivity will cause which of the following?

Assume an economy experiences an increase in productivity that occurs as a result of the more efficient use of existing technologies.Given this information,we would expect which of the following to occur?

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

An increase in productivity will likely cause

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

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

A major explanation for the decline in employment projected in textiles is

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 firms' of productivity are accurate while workers' expectations of productivity adjust slowly over time.In this case,an increase in productivity will cause which of the following?

Which of the following represents the wage setting relation when changes in labor productivity are allowed to occur?