This assigment is on Labor supply, and involves micro and macro economic analysis. The questions must be answered with appropriate economic intuition inlcuding the required mathematical solutions...

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This assigment is on Labor supply, and involves micro and macro economic analysis. The questions must be answered with appropriate economic intuition inlcuding the required mathematical solutions (graphs, optimization solutions, etc). I am currently an undergraduate (Senior level) and expect the solutions to be of high quality to satisfy the requirements.
Answered Same DayNov 07, 2021

Answer To: This assigment is on Labor supply, and involves micro and macro economic analysis. The questions...

Komalavalli answered on Nov 07 2021
142 Votes
1
Labor Supply:
    Labor supply represents number of workers who are willing and able to work in a particular industry at a given wage rate. The curve of labor supply al
ways an upward sloping curve, because at higher real wage rate workers are willing work more and at lower real wage rate labors are willing to work less. Let us understand how macro and microeconomic factors affects the supply of labor. Real wage and unemployment rate indicators were used for analyzing microeconomics level of labor supply. GDP, and unemployment rate indicators were used for analyzing macroeconomics level of labor supply from October 2018 to October 2020.
Micro economic analysis of Labor supply:
    Unemployment rate indicates the percentage of total labor force that are jobless, but actively seeking for employment opportunities. If a nation has high unemployment means that there is a gap between labor demand and labor supply. It also represents excess supply of that the nation is suffering of lack of job opportunities. Real wage rate indicates the amount of labor earnings or wage after adjusting for inflation rate. It indicates an individual purchasing power.
Unemployment rate:
Graph of Unemployment rate, seasonally adjusted from October 2018 to October 2020
Source: U.S Bureau of Labor statistics, Latest Release
From above unemployment rate we can see that before corona virus outbreak the unemployment was maintained between 2 to 4 per cent which was low from October 2018 to February 2020.After corona virus outbreak the unemployment rate started to rise slowly from March 2020 and it reached its peak of around 14 per cent unemployment rate during April 2020, then it started to fall...
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