HomeworkLib
Question

Imagine that you are the economic advisor of a country which experiences a high unemployment rate...

Imagine that you are the economic advisor of a country which experiences a high unemployment rate for a long time. The government (does not know the economic theory ) and is willing to implement the following policies in order to reduce the unemployment rate. The first one is to reduce the minimum wage. The second one is to increase the unemployment benefits. Discuss the two policies and their effect ( rely on the theory you have learnt ) and ultimately advice the government on what to do

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

At minimum wage, supply of labor is more than demand of labor which means that there exist unemployment in the economy. If minimum wage rate is reduced to new minimum wage, supply of labor at that wage is low than initial level and demand is high than initial level which reduces the unemployment rate.

Woge Rate S. erupt J Noge - New pin. Woge -paini lator New Unemployment Unemployment

If unemployment benefits are raised, it will induce workers to not even look for a job because they are getting sufficient perks in the form of money and others from government. It will unnecessarily raise deficit of government.

So, i would suggest to reduce minimum wage to reduce unemployment rate in the economy.

0 0
Add a comment
Know the answer?
Add Answer to:
Imagine that you are the economic advisor of a country which experiences a high unemployment rate...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 1-Imagine you're named an Economic Advisor to the president of a very poor and backward country...

    1-Imagine you're named an Economic Advisor to the president of a very poor and backward country (Sandokistan).   The President asks your advice on where they should use their very limited resources so that they can help escape the poverty trap. Should they invest in existing, traditional tools (think tractors, computers, known manufacturing techniques) or should they invest in cutting edge research where they might become a market leader? Please explain why you selected the option you did.   Conversely, why didn't...

  • Unfair Trade A global recession has hit and you are the economic advisor to a country...

    Unfair Trade A global recession has hit and you are the economic advisor to a country with a struggling economy and rising unemployment. Your country has a long history of trading with different nations, but due to the recession, labor and business groups are becoming ever more rabid in their pleas for the government to strengthen and enforce trade restrictions. The labor groups argue that too many businesses are trying to cut costs by replacing domestic workers with cheaper foreign...

  • Imagine that you are part of the mission of the World Bank to the country of Belindia. Bellindia is a developing economy, that is organized as a federation. Each one of its 15 states can impleme...

    Imagine that you are part of the mission of the World Bank to the country of Belindia. Bellindia is a developing economy, that is organized as a federation. Each one of its 15 states can implement different policies, and the federal government can also implement policies across the whole country. Belindia has just received a large loan from the World Bank. Your objective is to help the new government design and implement a series of policy interventions that hopefully will...

  • 4. (15) President Obama is preparing several policy proposals to lower the unemployment rate. He has...

    4. (15) President Obama is preparing several policy proposals to lower the unemployment rate. He has asked you to tell him what the effect will be of the following policies on the unemploy- ment rate. Be sure to explain your answer. (a) (5) Shortening the length of unemployment benefits. (b) (10) An increase in the minimum wage. (Use an appropriate graph to explain.)

  • Come on now, get a job. In this activity, you will select a country and explore...

    Come on now, get a job. In this activity, you will select a country and explore the concepts of unemployment and the phases of the business cycle as it relates to the economic well being of your selected country. Locate a recent article (published within the last year) that addresses the unemployment theory and unemployment rate of your selected country. You can use the Hunt Library, newspapers, new stations, or other credible sources to locate an article. Analyze your selected...

  • Write a paragraph. What are the costs of a high unemployment rate? Do you think providing...

    Write a paragraph. What are the costs of a high unemployment rate? Do you think providing more generous government benefits to the unemployed would increase these costs, reduce these costs, or leave them unchanged?

  • 2. If you are told that one country has a real GDP per capita of $20,000...

    2. If you are told that one country has a real GDP per capita of $20,000 and another country has a real GDP per capita of $40,000, explain what you know and don’t know about the differences in production and standard of living in those two countries. Make sure your answer shows that you understand exactly what real GDP per capita is! 3. Describe the phases and key characteristics of business cycles. Then explain where you think we are in...

  • Of the following government policies, which would be considered a neoclassical response to an economic recession?...

    Of the following government policies, which would be considered a neoclassical response to an economic recession? an increase in government spending adjusting the minimum wage higher dissolving labor unions If you are explaining the theory of rational expectations to a friend, you would say that the change in an agents’ expectations is ________ and therefore ________ the effectiveness of monetary or fiscal policy. based on historic information; always improves immediate; precludes slow; increases If a government expands its fiscal policy...

  • 1) You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The...

    1) You are hired by the Council of Economic Advisors (CEA) as an economic consultant. The chairperson of the CEA tells you that she believes the current unemployment rate is too high. The unemployment rate can be reduced if aggregate output increases. She wants to know what policy to pursue to increase aggregate output by $300 billion. The best estimate she has for the MPC is 0.8. Which of the following policies should you recommend? a) Reduce taxes by $75...

  • In 2019, the united states is experiencing an unemployment rate that is below its natural ......

    In 2019, the united states is experiencing an unemployment rate that is below its natural ... Your question has been answered Let us know if you got a helpful answer. Rate this answer Question: 1. In 2019, the United States is experiencing an unemployment rate that is below its natural rate... 1. In 2019, the United States is experiencing an unemployment rate that is below its natural rate of unemployment. That is, its labor force is more than fully employed....

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT