As an Economy Adjusts to an Decrease in the Saving

question 4

Multiple Choice

As an economy adjusts to an decrease in the saving rate,we would expect output per worker

• A)to decrease at a constant rate and continue decreasing at that rate in the steady state.
• B)to decrease at a permanently higher rate.
• C)to increase at a permanently higher rate.
• D)to return to its original level.
• E) none of the above

Assess how minimum wage laws and efficiency wages affect employment levels and worker turnover.

Understand the relationship between wage rates and employment levels in competitive labor markets.

Calculate total wage bills and profits at various levels of employment and wage rates.

Identify different market structures based on hiring practices and wage dynamics.