Describe how you might analyze and evaluate the following claim: College students who graduate during an economic recession accept jobs that, on average, pay 9% less than jobs accepted by students who graduate during economic expansions
What will be an ideal response?
First, you can look at historical data showing average introductory salaries for college graduates and at data showing the start and end dates for economic recessions and economic expansions over the years. You can then plot this data on a graph, comparing the average starting salaries to the years when the economy was experiencing economic recessions and economic expansions. Comparing the average starting salaries during each economic recession and during the economic expansions that immediately preceded and followed each recession will help you evaluate the claim.
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In the four-quadrant diagram of the specific factors model, the graph in the upper left quadrant is a country's
A) production function for food. B) production possibility frontier. C) labor allocation constraint. D) production function for cloth. E) labor supply curve.
Which of the following is the primary source of rapid growth in the real earnings of workers?
a. strong unions b. government regulation of labor markets c. rapid growth in worker productivity d. increases in the minimum wage