Unformatted text preview: to the right. Also provide an economic explanation for why each of these variables would shift the Production Function. 5. List the variables (and the direction of their change) that would shift the supply of labor function to the right. Also provide an economic explanation for why each of these variables would shift the Production Function. 6. Assume that the labor market starts in equilibrium. Suppose now that the supply of labor increases. Describe the adjustment process that moves the labor market from its initial equilibrium to its final equilibrium. C. On one side of a single sheet of paper: 1. Clearly and accurately draw and label a diagram of Okun’s Law. 2. Provide an explanation of the shape of the curve(s) that you have drawn in your diagram in #1. 3. Provide an economic explanation of Okun’s Law....
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This note was uploaded on 09/04/2010 for the course EEP 175 taught by Professor Christiantraeger during the Fall '09 term at Berkeley.
- Fall '09