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LG1: How are wages determined? What is the relation between pay and unemployment? LG2: What is the relation between price setting and the real wage? LG3: What is the relation between wage setting, price setting and unemployment? What is the 'battle of markups'? LG4: Why does the unemployment rate return to the natural rate, and what is the role of expectations in this concept? LG5: Movements in unemployment
100
true
Wages are high when unemployment is low and wages are low when unemployment is high.
True or false?
100
Nominal wage -> money earned each month with a job
Real wage -> Buying power, the more I can buy
What are the different kinds of wage and what are the differences between them?
100
Unemployment occurs when workers who want to work are unable to find jobs, which lowers economic output; However, they still require subsistence.
What is unemployment?
100
Structural rate of unemployment
What can be another name for the equilibrium unemployment rate?
100
False
The unemployment rate must be a peak in the year of the economic crisis.
True or false?
200
National labour relations
Which federal law encourages workers to unionise and collectively bargain?
200
The price set by companies is obtained by adding 1 to the markup and by multiplying the result by the wage.
What does the equation P= (1+m)*W mean?
200
high unemployment -> easy for firms to find workers, difficult for workers to find another job. Bargaining power decreases.
Low unemployment -> Easy for workers to find another job, hard for firms to find other employees.
Bargaining power increases
What is the difference between high and low unemployment?
200
Equilibrium between wage and price setting
What is the natural rate of unemployment?
200
Avoid hiring new workers, restructuring
There are two options that companies can choose to control their number of workers during an economic crisis. What are the options? Explain.
300
Expected price level, unemployment rate and any other variable that affects wage
Which three factors does the wage determination equation depend on?
300
Production function
What is another name for costs?
300
maximise profit
firms want people (including own employees) to buy their goods
What is the battle firms face?
300
Shifts wage setting up and Natural unemployment increases
What impact does higher unemployment benefits have on natural unemployment, how does it shift wage/price setting relations?
300
Higher unemployment rate means lower cost for replacement because there are many talents to replace in the job market, so they lose their bargaining power than economic expansion it means they face a situation where they have to sign in a small wage.
Explain the reason why the higher unemployment rate leads to lower wages of workers?




Jeopardy game Macro economics edition

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