Problem
Podcast: Freakonomics
Title: Which Jobs Will Come Back, and When?
This second half of the podcast focuses on the (recent) Covid recession, and particularly the labour market and then automation. They noted that we were in a large recession (a huge recessionary gap in our lecture model), and talk about various ways that the labour market is adjusting and how firms are adjusting they mix of inputs, partially as a result of being force to by this recession. When in a recessionary gap in our model in class, how does market for our factor inputs (labour and capital) adjust? Given the factor prices can be (very) slow to adjust, what are other adjustments that firms were making or might have been making outside of factor prices (wages and the price of capital) to respond to the covid economic crisis?