Question 1:

One impact of climate change is an increase in the frequency of extreme temperatures especially in countries with warm climates. This has been shown to reduce agricultural productivity (and hence agricultural wages) in developing countries. 2) Thinking about this problem through the lens of the Harris-Todaro framework of rural- urban migration, what impact would a big reduction in the productivity of agricultural labour have on unemployment and the unemployment rate in the urban sector? Assume there is no surplus labour. a. Both unemployment and the unemployment rate will go down ' " b. Both unemployment and the unemployment rate will go up ' " c. There is not enough information: the unemployment rate could go up or down ' d. Unemployment will go down but the unemployment rate will go up ' e. Unemployment will go up but the unemployment rate will go down