🗊Презентация The labour market

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THE MEDIUM RUN CHAPTER 8: THE LABOUR MARKET
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THE MEDIUM RUN CHAPTER 8: THE LABOUR MARKET

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8.2 Wage Determination
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8.2 Wage Determination

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8.3 Price Determination The production function is the relation between the inputs used in production and the quantity of output produced. Assuming that firms produce goods using only labour, the production function can be written as:
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8.3 Price Determination The production function is the relation between the inputs used in production and the quantity of output produced. Assuming that firms produce goods using only labour, the production function can be written as:

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8.3 Price Determination (Continued) Firms set their price according to:
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8.3 Price Determination (Continued) Firms set their price according to:

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8.4 The Natural Rate of Unemployment In this section, we will look at the implications of wage and price determination for unemployment.
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8.4 The Natural Rate of Unemployment In this section, we will look at the implications of wage and price determination for unemployment.

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Since Pe equals P, then: Since Pe equals P, then:
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Since Pe equals P, then: Since Pe equals P, then:

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The price-determination equation is: The price-determination equation is:
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The price-determination equation is: The price-determination equation is:

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The price-setting relation in Equation (8.6) is drawn as the horizontal line PS (for price setting) in Figure 8.10. The price-setting relation in Equation (8.6) is drawn as the horizontal line PS (for price setting) in Figure 8.10. The real wage implied by price setting is 1/(1 = µ); it does not depend on the unemployment rate.
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The price-setting relation in Equation (8.6) is drawn as the horizontal line PS (for price setting) in Figure 8.10. The price-setting relation in Equation (8.6) is drawn as the horizontal line PS (for price setting) in Figure 8.10. The real wage implied by price setting is 1/(1 = µ); it does not depend on the unemployment rate.

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Eliminating W/P from the wage-setting and the price-setting relations, we can obtain the equilibrium unemployment rate, or natural rate of unemployment, un: Eliminating W/P from the wage-setting and the price-setting relations, we can obtain the equilibrium unemployment rate, or natural rate of unemployment, un:
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Eliminating W/P from the wage-setting and the price-setting relations, we can obtain the equilibrium unemployment rate, or natural rate of unemployment, un: Eliminating W/P from the wage-setting and the price-setting relations, we can obtain the equilibrium unemployment rate, or natural rate of unemployment, un:

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The positions of the wage-setting and price-setting curves, and thus the equilibrium unemployment rate, depend on both z and μ. The positions of the wage-setting and price-setting curves, and thus the equilibrium unemployment rate, depend on both z and μ. At a given unemployment rate, higher unemployment benefits lead to a higher real wage. A higher unemployment rate is needed to bring the real wage back to what firms are willing to pay. By letting firms increase their prices given the wage, less stringent enforcement of antitrust legislation leads to a decrease in the real wage.
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The positions of the wage-setting and price-setting curves, and thus the equilibrium unemployment rate, depend on both z and μ. The positions of the wage-setting and price-setting curves, and thus the equilibrium unemployment rate, depend on both z and μ. At a given unemployment rate, higher unemployment benefits lead to a higher real wage. A higher unemployment rate is needed to bring the real wage back to what firms are willing to pay. By letting firms increase their prices given the wage, less stringent enforcement of antitrust legislation leads to a decrease in the real wage.

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Because the equilibrium rate of unemployment reflects the structure of the economy, a better name for the natural rate of unemployment is the structural rate of unemployment. Because the equilibrium rate of unemployment reflects the structure of the economy, a better name for the natural rate of unemployment is the structural rate of unemployment.
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Because the equilibrium rate of unemployment reflects the structure of the economy, a better name for the natural rate of unemployment is the structural rate of unemployment. Because the equilibrium rate of unemployment reflects the structure of the economy, a better name for the natural rate of unemployment is the structural rate of unemployment.

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Associated with the natural rate of unemployment is a natural level of employment. Associated with the natural rate of unemployment is a natural level of employment.
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Associated with the natural rate of unemployment is a natural level of employment. Associated with the natural rate of unemployment is a natural level of employment.

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Associated with the natural level of employment is the natural level of output, and since (Y=N): Associated with the natural level of employment is the natural level of output, and since (Y=N):
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Associated with the natural level of employment is the natural level of output, and since (Y=N): Associated with the natural level of employment is the natural level of output, and since (Y=N):

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