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Unformatted text preview: According to your research, the average student consumes 20 pens, 6 notebooks, 8 textbooks, 25 pizzas, 10 compact disks, and 10 bottles of soda per semester. Construct a student price index for 1990 and 2000. Assume that 1990 is the base year. How much (by what percentage) did student prices change in the ten-year period? 4. Using labor supply and demand graphs for both the Keynesian and classical models, show the effects of a decrease in the demand for labor. Assume that both markets start in equilibrium. 5. Using the labor market, production function. and AS/AD graphs of the classical model, show the effects of an increase in the labor supply. What are the effects on real wages, the quantity of labor, real GDP, and prices? Explain and show graphically....
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This note was uploaded on 11/19/2010 for the course ECON 162 taught by Professor Christianson during the Spring '05 term at Binghamton University.
- Spring '05