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 3% reduction in productivity.Explain how this 3% reduction in productivity can cause changes in the unemployment rate.

In recent years,real wages of the least educated workers

The empirical evidence suggests that periods of high productivity growth will cause which of the following in the short run?

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?

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?

For this question,assume that the aggregate production function is represented by Y = A.Which of the following represents the marginal cost of producing an additional unit of output?

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.

Since 1971,the annual growth rate of real wages has been

Employment will decrease as a result of an increase in productivity when which of the following occurs?

For this question,assume productivity has been increasing by 5% per year.Also assume that workers' expectations of productivity growth adjust slowly over time.For this economy,a reduction in productivity growth from 5% to 2% will most likely cause which of the following to occur?

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

Which of the following is NOT true about technological progress?

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

Because of labor hoarding,a reduction in output may signal

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

Assume an economy experiences,for a given period,a 4% increase in output and a 4% increase in productivity.Given this information,we know that which of the following occurred for this economy during this period?

Using the AS / AD model,graphically illustrate and explain the short-run effect of an increase in productivity.In your graph,clearly label all curves and equilibria.

Based on price setting behavior,which of the following will cause a reduction in the price level?

Which of the following statements about the United States during the twentieth century is correct?

Explain some of the causes of increased wage inequality.