Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

problem 1: Suppose the government’s goal is to reduce the unemployment rate. Some legislators propose that the government should give a subsidy s to any firm that hires a worker. Some other legislators argue that it would be more effective to simply pay consumers to stay home rather than searching for work, that is, anyone who chooses not to participate in the labor force should receive a payment q. Which policy is more effective in achieving the government’s goal? describe using the DMP model, with the aid of diagrams. [In your answer, do not concern yourself with how the subsidies from the government are financed].

problem 2: Adapt the DMP model to include government activity as follows. Suppose that the government can operate firms, subject to the same constraints as private firms. In particular, the government must incur a cost k to post a vacancy. Supposing that the government operates G firms, then the number of matches in the economy as a whole is M = em(Q, A+G), where A is the number of private firms that choose to post vacancies. Assume that the government pays the same wages as do private sector firms. Determine the effects of G on the unemployment rate, the vacancy rate, the labor force, the number of private firms, the total number of firms (private and government-run), aggregate output, and labor market tightness. describe your results.

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M94642

Have any Question? 


Related Questions in Macroeconomics

Explain why 76 years ago the rowell-sirois commission

Explain why, 76 years ago, the Rowell-Sirois Commission argued that: "The quality of education and welfare services is no longer a matter of purely provincial and local concern. In Canada today, freedom of movement and e ...

Topic international tradequestionpromptnbspin 2014 the

Topic: International Trade Question/Prompt:   "In 2014, "the United States exported $2.34 trillion worth of goods and services-an all-time record. Exports from the United States in 2014 equaled the entire gross domestic ...

A journalist notes that despite of the financial crisis in

A journalist notes that, despite of the financial crisis in 2008, the median US wage has risen since 2000. Another journalist is surprised about that fact because she knows that, over the same period, not only the median ...

Assignmentdirections please answer each of the following

Assignment Directions: Please answer each of the following questions in as detailed a manner as possible, and be sure to include all appropriate material discussed in the lectures and the assigned reading material. 1) Co ...

Suppose the firms labor demand curve is given bywnbsp 20 -

Suppose the firm's labor demand curve is given by: w  = 20 - 0.01 E , where  w  is the hourly wage and  E  is the level of employment. Suppose also that the union's utility function is given by U = 2 w  ´  E . It is easy ...

According to the immigrant assimilation related studies the

According to the immigrant assimilation related studies, the typical earnings profiles of immigrants start lower and literature, born. In the space are steeper than the earnings profiles of the native for years below, u ...

Why scarcity is the fundamental economic problem that all

Why scarcity is the fundamental economic problem that all societies face? Then, explain what we study in microeconomics and macroeconomics.

Do you agree or disagree with one of the following

Do you agree or disagree with one of the following statements (just need to pick one)? Find an article that supports your claim. Summarize the article and write a short paragraph explaining your opinion. There is no righ ...

Discuss the circumstances whereby fiscal expansion leads to

Discuss the circumstances whereby fiscal expansion leads to full-crowding out.

Assignmentfor this submission you will need to find a topic

Assignment For this submission, you will need to find a topic of interest related to race and ethnicity, social change, or both. You may come up with a topic of your own, or choose from the list below: - white privilege, ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro