Pols Ms And 2 The Connection Between Macroeconomics And Microeconomics While Economists Measure Unemployment At The Mac 1 (40.59 KiB) Viewed 8 times
Pols Ms And 2 The Connection Between Macroeconomics And Microeconomics While Economists Measure Unemployment At The Mac 2 (34.72 KiB) Viewed 8 times
pols ms and 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 tie 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 (Dollars per hour) 12 Labor Supply I 1 1 X Labor Demand 200 400 600 800 QUANTITY (Thousands of workers) 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) $12.3 180 640 0 Labor Supplied (Thousands of workers) 820
ind Suppose the minimum wage in this economy is $12.30 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 $12.30 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 = Unemployed x 100 Labor Force workers, and False At a minimum wage of $12.30 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 Illinois 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 $12.30, unemployment of unskilled workers is lower with the tax credit versus without it. O True unskilled Grade It Now Save & Continue Continue without saving
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