Simple Economics Assignment, economics homework help

Please note, it looks longer than it is. For many questions you only need to write about one.1.  Unemployment: You are an economist(or at least an aspiring one).  a.  If I were to pin you down to anumber, what number would you give for the current Natural Rate ofUnemployment?  Why?b.  Now suppose our economy is currentlyfunctioning at that Natural Rate of Unemployment.  CHOOSE ONLY ONE OF THE SECTIONS (i, ii, oriii) BELOW AND ANSWER IT.  Keep in mindthat a good answer will include an understanding of both incidence and durationof unemployment, our stock-flow model of unemployment, and reasons grounded ineconomic theory for changes in unemployment rates. i. Congresspasses, and funds, an act that pays for 6 months of retraining expenses foranyone who has lost a job for demonstrably STRUCTURAL reasons. orii. Aspike in oil prices moves the US macroeconomy into recession.  Discuss both near term, and longer termchanges in unemployment, oriii. Anear collapse of the US banking system causes a severe tightening of credit inUS financial markets, moving the US macroeconomy into recession.  Discuss both near term, and longer termchanges in unemployment.2.  One might state the “Law of Demand” as it applies to demand for labor asfollows.  Other things remaining thesame, if the wage rate falls, the quantity of labor demanded rises.a.  In the Short Run, we say this Law ofDemand is due to the Scale Effect. Please explain.b.  In the Long Run, we say this Law ofDemand is due to both the Scale Effect and the Substitution Effect.  Please explain.c.  Would you expect the firm’s demand for labor to be more wage elastic in the Short Run, or in theLong Run?  Please explain.d.  Suppose a firm uses three kinds ofinputs to produce its product: Unskilled Labor, Skilled Labor, andCapital.  Suppose Unskilled Labor and SkilledLabor are substitutes in production, Unskilled Labor and Capital aresubstitutes in production, and Skilled Labor and Capital are complements inproduction.  Suppose technological changeleads to a significant drop in the price of Capital.  Please answer the following questions.i. Predictthe firm’s Short Run changes in employmentof  Unskilled Labor, Skilled Labor, andCapital.  Please explain.ii. Predictthe firm’s Long Run changes in employment ofUnskilled Labor, Skilled Labor, and Capital. Please explain.  iii. Besure to explain carefully why your Short Run answers differ from your Long Runanswers.  Will Unskilled Labor employmentand Skilled Labor employment be affected similarly or differently in the LongRun?  Why?3.  MinimumWage.  a.  The standard microeconomic modeltells us that if a minimum wage is effective, a rise in the minimum wage shoulddecrease employment, increase the wages of certain unskilled workers, possiblydecrease the wages of certain other unskilled workers, and have an ambiguouseffect on total earnings of unskilled workers. Please explain.Analysis of the potential effects of an increase in the effectiveminimum wage is perhaps more complicated than the above statementsuggests.  PLEASE CHOOSE ONLY ONE of theoptions below and answer it.b.  Research by economists Card andKrueger[1] in the mid 1990s came to an apparentlycontradictory conclusion that a rise in the minimum wage received by fast-foodworkers in New Jersey led to an increase in both wages and employment ofunskilled workers.  How might this betrue?  Summarize the possible reasonsfound in economic theory that might help to explain these findings.c.  A rise in the effective minimum wagecan alter not only the total earnings of unskilled workers but the earnings ofother workers as well.  Use what you knowabout unskilled labor - skilled labor substitutability, and about how anincrease in the wages of one tier of workers might affect the wages of anothertier of workers, to discuss potential impacts on the distribution of earningsdue to an increase in the minimum wage.d.  In many states recently legislatedminimum wage increases (and recently proposed ones) call for large increases inthe minimum wage (up to $15 per hour). These are not unlike Living Wages that have been adopted in a number ofUS cities, just on a larger scale.  Usewhat you know to discuss the possible impacts on employment and earnings ofsuch large increases in the minimum wage.[1] Myth andMeasurement: The New Economics of the Minimum Wage,1995.Please submit with quality in a timely manner as there is a strict deadline.