News Analysis French Riots Graded Assignment | l Back to Assignment Due Monday 0
ID: 1136208 • Letter: N
Question
News Analysis French Riots Graded Assignment | l Back to Assignment Due Monday 09.17.18 at 11:00 PM Attempts: Average: 14 2. The connection between macroeconomics and microeconomics Aa Aa Unemployment analysis is an excellent example of the ties between measure unemployment at the macro level, but micro forces partly determine this macro aggregate. macroeconomics and microeconomics. We Suppose the following graph in the calculator represents the market for unskilled labor in France. Many of the young, inexperienced youths involved in the recent rioting would begin their working careers in this labor market. Use the calculator to answer the questions. Tool tip: Use your mouse to drag the green line on the graph. The values in the boxes on the right side of the calculator will change accordingly. You can also directly change the values in the boxes with the white background by clicking in the box and typing. When you click the Calculate button, the graph and any related values will change accordingly 15 + Wage 7.5 Labor Demanded 500 Labor Supplied 500 12 Payrolf tax 40Explanation / Answer
At minimum wage rate of $10, the labor supply is 700 labors and labor demand is 350. The surplus of labor is 700-350 = 350 Thus firms will employ 350 labors only and the rest will left as unemployed. Hence 350 employees will be unemployed.
At the minimum wage the number of employed workers is 350 and number of unemployed is 350. Henec labor force will be 350+350 = 700 labors
At minimum wage rate, that is $10, the unemployment rate is 350/700 * 100 = 50%
If the payroll tax reduces from 40% yo 30% then the labor supply will reduce and henec the labor supply curve will shift upward with 10 points parallel to the original one.
Because of this shift the labor supply at minimum wage will be 550 now. Hence now number of people unemployed will be 550-350 = 200
Labor force will be 200+350 = 550
Hence new unemployment rate = 200/550 * 100 = 36.4%