Can you help me find the solution to this question?
Consider an economy that initially has a labor force of2000workers. Of these workers, 1900 are employed and each works40hours per week. Ten units of output are produced by each hour of labor.
(a) What is the total number of hours worked per week in the economy? What is the total output per week in the economy? What is labor productivity per hour? What is labor productivity per worker in a week? What is the unemployment rate?
(b) The economy enters a recession. Employment falls by 4% and the number of hours per week worked by each employed worker fallsby2.5%. Also, 0.2% of the labor force becomes discouraged at the prospect of finding a job and leaves the labor force. Finally, suppose that whenever total hours fall by 1%, total output falls by1.4%. During the recession, what is the size of the laborforce? How many workers are unemployed and what is the unemployment rate? What is the total output per week in the economy? What is labor productivity per hour? What is labor productivity per worker ina week?
Can you help me find the solution to this question?
Consider an economy that initially has a labor force of2000workers. Of these workers, 1900 are employed and each works40hours per week. Ten units of output are produced by each hour of labor.
(a) What is the total number of hours worked per week in the economy? What is the total output per week in the economy? What is labor productivity per hour? What is labor productivity per worker in a week? What is the unemployment rate?
(b) The economy enters a recession. Employment falls by 4% and the number of hours per week worked by each employed worker fallsby2.5%. Also, 0.2% of the labor force becomes discouraged at the prospect of finding a job and leaves the labor force. Finally, suppose that whenever total hours fall by 1%, total output falls by1.4%. During the recession, what is the size of the laborforce? How many workers are unemployed and what is the unemployment rate? What is the total output per week in the economy? What is labor productivity per hour? What is labor productivity per worker ina week?
