Macroeconomics - Equilibrium and Economic Fluctuations - Labor Demand and fluctuations
10 important questions on Macroeconomics - Equilibrium and Economic Fluctuations - Labor Demand and fluctuations
Shifts in the labor demand curve: 2) Change in output demand
Shifts in the labor demand curve: 3) Change in technology and productivity
Shifts in the labor demand curve: 4) Changing input prices
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What is the Downward Wage Rigidity?
Why are firms unable or unwilling to cut nominal wages?
1) contractual restrictions
2) Impact on work morale
What is capital utilization?
Example: When employment falls, the physical capital which the prev. employee was using is less productive.
What causes changes in Labor Supply Curve?
1) Tastes and Preferences
2) Opportunity Cost of Time (Robot vacuum cleaner so I can go to work and don’t have to spend time on it myself)
3) Population and demographics (more people who can work)
What causes changes in Labor Demand Curve?
2) Changing output demand
3) Changing Technology and Productivity
4) Changing Input prices
What is Keynes view on Fiscal Policy?
What is Keynes view on Monetary Policy?
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