ECO202Y5 Lecture 33: Lectures 33-40

161 views10 pages
2 Mar 2017
School
Department
Course
Professor

Document Summary

De(cid:373)a(cid:374)d side sho(cid:272)ks do(cid:374)"t i(cid:373)pa(cid:272)t the la(cid:271)o(cid:396) (cid:373)a(cid:396)ket (cid:272)u(cid:396)(cid:448)es. Ws and ps curves: new: supply side shocks will shift either ws and ps new un (un un. Example: oil prices increasing in 1970s: poil price of oil increased dramatically in 1970s, 1973-1975. Increase in price of oil due to formation of: 1979-1982. Around 1982, opec started deviating from cartel levels of output, price of oil started decreasing again. Incorporate price of oil as a component of the markup rate (m): increase in price of oil increase in markup rate. Increase in markup rate shifts ps curve: labor market: W/p = 1/ m +1 increase in m (increase in denominator) causes w/p to decrease, real wage decreases, shifts ps down, natural rate of unemployment is higher. Recall that a decrease in y = decrease in n goods produced depends on. 2 nn" > nn workers: example 3: (supply side shock): increase in poil increase in oil prices i i20.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related textbook solutions

Related Documents

Related Questions