Using the aggregate demand/aggregate supply model, explain the difference in the employment prospects of the graduates of 2007 and 2009
The graduates of 2007 were facing an economy where both the aggregate demand and aggregate supply curves were shifting outwards leading to increasing real GDP, lower unemployment rates, and a high demand for labor. This position was heading in the direction of an inflationary gap, illustrated by the increasing salaries and bonuses received by the lucky graduates of 2007 . In contrast, the graduates of 2009 were facing a situation where the aggregate demand curve was shifting inwards, creating conditions more similar to a recessionary gap. This signaled a decrease in real GDP, increasing unemployment rates and lower salary offers and the virtual disappearance of bonuses and other signs of a seller's labor market.
You might also like to view...
Everything else equal, if the dollar appreciates against the peso:
A) U.S. will export more to Mexico and will import less from Mexico. B) U.S. exports to Mexico and imports from Mexico will decrease. C) U.S. exports to Mexico and imports from Mexico will increase. D) U.S. will import more from Mexico and will export less to Mexico.
An industry's total revenue is $100 million. The above table shows the total revenue of the four largest firms in an industry
a. Calculate this industry's four-firm concentration ratio. b. Is this industry competitive? c. What market type does it most likely represent?
Adverse selection occurs when there is
A) full information. B) unobserved behavior. C) an unobserved characteristic. D) a worker who shirks because his boss does not watch him.
Sellers gain a net benefit by producing units at a cost ______.
a. equal to the market price b. lower than the market price c. somewhat higher than the market price d. double the market price