Explain What Effect a Reduction in Productivity Has on Wage

question 34

Essay

Explain what effect a reduction in productivity has on wage setting behavior,price setting behavior,the equilibrium real wage,the natural rate of unemployment,and the natural level of output.

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Definitions:

Encoding Specificity

The principle that the recall of information is improved if the cues present at the time of encoding are also present at the time of retrieval.

Context and Memory

The way in which the situation or environment in which information is learned can affect recall of that information.

Depth of Processing

A theory suggesting that the depth (shallow to deep) at which information is thought about affects the duration and strength of memory of that information.

Tip-of-the-Tongue

The phenomenon of failing to retrieve a word from memory, combined with partial recall and the feeling that retrieval is imminent.