Question
A. Assume that you observe that, as a result of this productivity drop, employment decreased by 10% and output decreased by 9%. L = (
A. Assume that you observe that, as a result of this productivity drop, employment decreased by 10% and output decreased by 9%.
L=(0.4A/w)1.667
Based on this information, determine the approximate size of the decrease inA.
B. Based on this information, determine the approximate change inwages. Be sure to specify if wages increased or decreased, and by how much.
C. Based on this information, determinethe approximate change in thelabor share of income. Be sure to specify whether the labor share of income increased or decreased, and by how much.
| A. Assume that you observe that, as a result of this productivity drop, employment decreased by 10% and output decreased by 9%. L=(0.4A/w)1.667 Based on this information, determine the approximate size of the decrease inA. B. Based on this information, determine the approximate change inwages. Be sure to specify if wages increased or decreased, and by how much. C. Based on this information, determinethe approximate change in thelabor share of income. Be sure to specify whether the labor share of income increased or decreased, and by how much. |
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Statistics For Engineers And Scientists
Authors: William Navidi
3rd Edition
73376345, 978-0077417581, 77417585, 73376337, 978-0073376332
