Quiz 7

The introduction of new labor saving technology results in

higher unemployment, lower wage share of output and higher income inequality in the long run

in an imaginary economy GDP falls from $1000 billion to $95 billion while output per worker rises from $5000 to $5020. in this economy there has been

a fall in production and an increase in productivity

What can help minimize the costs of adapting to new technology

government re-training schemes

What is correct about the model of the labor market

in the short and medium run models the amount of capital is fixed, while in the long run model the amount of capital can vary

The Beveridge curve will shift downward (towards origin) if

information about job vacancies improves

in the short run, successive additions to capital produce smaller and smaller increases in output. in the long run however GDP continues to rise because

new capital equipment incorporates the latest technological developments

The relationship between the unemployment rate and the job vacancy rate (each expressed as a fraction of the labour force) is known as

the Beveridge curve

the widespread acceptance of new technology into an economy takes time, the length of time between first appearance and general acceptance is

the diffusion gap

unemployment is a stock. the size of that stock will increase if

the rate of job destruction is 2% per year and the rate of job creation is 1% per year

what is a distinctive characteristic of 'inclusive unions'

they set their wage demands in accordance with the productivity of labor