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

Assume expectations of prices are correct but expectations of productivity adjust slowly.Use the PS / WS relations,graphically illustrate and explain the effects of a decrease in productivity growth on the natural rate of unemployment.

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

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.

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?

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.

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?

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

Suppose an economy experiences an increase in productivity.The AD curve will most likely shift to the right when this increase in productivity is the result of which of the following?

"Churning" refers to

For this question,assume that expectations of productivity are slow to adjust.Further assume that A had been increasing by 6% a year.Now suppose that A only increases by 2% in period t.This slowdown in productivity growth will cause

An increase in productivity will cause which of the following according to the price-setting behavior of firms?

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

Explain how technological change can cause changes in wage inequality.

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

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

Among the reasons that the poor countries have been unable to close the "technology gap" with the rich countries is

Which of the following would increase the gap in wages between skilled and unskilled workers?

Suppose an economy experiences an increase in productivity.The AD curve will most likely shift to the left when this increase in productivity is the result of which of the following?

Technological unemployment is a macroeconomic phenomenon that occurs when

For this question,assume expectations of P and A are correct.Now suppose that there is a 3% reduction in A.Given this information,which of the following will occur?