Based on your understanding of the labor market model presented by Blanchard (i.e., the WS and PS relations), explain what types of policies could be implemented to cause a reduction in the natural rate of unemployment
What will be an ideal response?
The natural rate of unemployment will change whenever either the PS or WS relations change. To reduce the natural rate, policy makers could implement polices that: (1 ) reduce unemployment benefits; (2 ) reduce the minimum wage; or (3 ) increase competition in product markets.
Economics
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What causes capital and labor shares of gross domestic product to remain consistent over the years?
What will be an ideal response?
Economics
Disagreement between the partners during operation can result in:
a. Dissolution or reorganization of the business. b. sale of the business to a third party. c. one partner buying the other's assets. d. the admission of a new partner.
Economics