Chapter 4 AP Econ
... can’t experiment with economics, so we use data & try to control other factors ...
... can’t experiment with economics, so we use data & try to control other factors ...
Economics 101 Fall 2010 Answers to Homework #4 Due: 11/04/2010 in lecture
... b. Did any of these three individuals experience an increase in their nominal wage and a decrease in their real wage? Jack’s nominal wage increased by 4 but his real wage decreased by 20. c. Did any of these three individuals experience a decrease in their nominal wage and an increase in ...
... b. Did any of these three individuals experience an increase in their nominal wage and a decrease in their real wage? Jack’s nominal wage increased by 4 but his real wage decreased by 20. c. Did any of these three individuals experience a decrease in their nominal wage and an increase in ...
Chapter 6 INFLATION
... LR and FE level (Y0) and the price level increase further to P2. • This process is only a one-time rise in P. For inflation to proceed, AD must persistently increase. • Since now the money wage is higher which means people can spend more and as a result P is higher (P2), the only result is the incre ...
... LR and FE level (Y0) and the price level increase further to P2. • This process is only a one-time rise in P. For inflation to proceed, AD must persistently increase. • Since now the money wage is higher which means people can spend more and as a result P is higher (P2), the only result is the incre ...
Thomas Maltus (1766-1834)
... - excessive population relative to subsistence lowers the wage rate (since population is large relative to demand), causing labourers to work harder, and increases the cost of provisions. This causes many ‘severe distress’ which discourages marriage and population growth. The low wage rate, harder w ...
... - excessive population relative to subsistence lowers the wage rate (since population is large relative to demand), causing labourers to work harder, and increases the cost of provisions. This causes many ‘severe distress’ which discourages marriage and population growth. The low wage rate, harder w ...
W 0
... • The optimum mix of capital and labour depends on the relative prices of each input. • This helps to explain why more labour-intensive means of production are used in some countries where labour is relatively abundant. ...
... • The optimum mix of capital and labour depends on the relative prices of each input. • This helps to explain why more labour-intensive means of production are used in some countries where labour is relatively abundant. ...
Factor Markets Teaching Notes
... are determined: the relative incomes (shares of the national income) of labour, owners of capital, and owners of land (i.e. natural resources). Adam Smith (The Wealth of Nations, 1776), David Ricardo (Principles, 1817), Karl Marx (Das Kapital, 1867), and others (Malthus, J.S. Mill) all were concerne ...
... are determined: the relative incomes (shares of the national income) of labour, owners of capital, and owners of land (i.e. natural resources). Adam Smith (The Wealth of Nations, 1776), David Ricardo (Principles, 1817), Karl Marx (Das Kapital, 1867), and others (Malthus, J.S. Mill) all were concerne ...
counter-cyclical
... e.g. First-class cabins on a plane vs. Economy; First-class would have a higher income elasticity. ...
... e.g. First-class cabins on a plane vs. Economy; First-class would have a higher income elasticity. ...
Basics
... Too high of a wage (W2) and excess supply of labor results, putting downward pressure on wages. Too low of a wage (W1) and excess demand of labor results, putting upward pressure on wages. At WE the market is in equilibrium and firms are wage takers. ...
... Too high of a wage (W2) and excess supply of labor results, putting downward pressure on wages. Too low of a wage (W1) and excess demand of labor results, putting upward pressure on wages. At WE the market is in equilibrium and firms are wage takers. ...
Middle-class squeeze
The middle-class squeeze is the situation where increases in wages fail to keep up with inflation for middle-income earners, while at the same time, the phenomenon fails to have a similar impact on the top wage earners. Persons belonging to the middle class find that inflation in consumer goods and the housing market prevent them from maintaining a middle-class lifestyle, making downward mobility a threat to aspirations of upward mobility. In the United States for example, middle-class income is declining while many goods and services are increasing in price, such as education, housing, child care and healthcare.