Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a. When unemployment exists in the supply and demand labor market model, there is an adjustment that brings the model back into equilibriumback to full

a. When unemployment exists in the supply and demand labor market model, there is an adjustment that brings the model back into equilibriumback to full employment.Orthodox economists cite two mechanisms that cause the adjustment.Explain each of these.

b. How would removing from the supply and demand labor market model, the assumption that laborers learn no skills on the job, affect how firms are supposed to act when unemployment exists?Explain in detail.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Principles Of Microeconomics

Authors: N Gregory Mankiw

7th Edition

1305081676, 9781305081673

More Books

Students also viewed these Economics questions

Question

What research studies are you interested in conducting?

Answered: 1 week ago

Question

1. Maintain my own perspective and my opinions

Answered: 1 week ago