Y Tools Tips Tips Ou Ith Your Attempts Keep The Highest 3 2 The Connection Between Macroeconomics And Microeconomics Wh 1 (37.43 KiB) Viewed 10 times
Y Tools Tips Tips Ou Ith Your Attempts Keep The Highest 3 2 The Connection Between Macroeconomics And Microeconomics Wh 2 (28.25 KiB) Viewed 10 times
y Tools Tips Tips OU ith Your Attempts Keep the Highest/3 2. The connection between macroeconomics and microeconomics While economists measure unemployment at the macroeconomic level, microeconomic forces are often responsible for this macro aggregate. In other words, the the between microeconomics and macroeconomics is inevitable when discussing the level of unemployment in an economy. Suppose the following graph represents the market for unskilled labor in a fictional economy. These workers typically represent the young, inexperienced, or uneducated part of the labor force and are therefore most effected by changes in the unemployment rate. Use the graph input tool to help you answer the following questions. You will not be graded on any changes you make to this graph Note: Once you enter a value in a white field, the graph and any corresponding amounts in each grey field will change accordingly. WAGE (Dos per hour Labor Supply I # Lab Demand 400 200 000 QUANTITY (Thousands of workers) 800 1000 Graph Input Tool Labor Market Wage Rate (Dollars per hour) Labor Demanded (Thousands of workers) Surplus Labor (Thousands of workers) Labor Demand Shifters Tax Credit (Dollars per hour) $11.1 260 480 0 Labor Supplied (Thousands of workers) 740
Tools ps ips DU th Your Suppose the minimum wage in this economy is $11.10 per hour. An unemployed worker is defined as someone who is willing to work at the prevailing wage but is unable to find employment. Because the minimum wage lies above the equilibrium wage, it is binding, which means it is also the prevailing wage. If the wage is not allowed to fall below $11.10 per hour, the size of the unskilled labor force is workers are considered unemployed. The unemployment rate is defined as the percentage of unemployed workers in the labor force: Unemployment Rate = Deped x 100 workers, and. unskilled At a minimum wage of $11.10 per hour, the unemployment rate among unskilled workers is approximately Recall that according to the article, a bill moving through the legislature would allow small businesses in Jilinols to collect a tax credit to offset the additional cost of a higher minimum wage. The previous graph shows an initial tax credit of $0. For simplicity, assume that small businesses are the primary demanders of unskilled workers, and they would receive a tax credit equating to $1 per hour. True or False: With a minimum wage of $11.10, unemployment of unskiled workers is higher with the tax credit versus without it. O True O false
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