Why wage rates differ
Problem
Why Wage Rates Differ. It includes non-wage job characteristics, human capital, and efficiency wages. Share with the class an example you know of one of these, or of some other situation, where wages differ.
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Evaluate your results and use specific reasons and examples to support your answer.
Set the fiscal stimulus parameter to 5% of GDP. How does this impact the size of the GDP by the end of the pandemic as opposed to a no-stimulus scheme? Why?
List down at least three policy measures that were introduced by the Government of Indonesia in 2020 to counterbalance the business cycle.
In percentage, what is the short-run impact on the price level? In percentage, what is the long-run impact on output?
Why Wage Rates Differ. It includes non-wage job characteristics, human capital, and efficiency wages. Share with the class an example you know of one of these.
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After the pandemic, would we expect those economies to grow faster or slower than the US economy? Explain.
Suppose also that the Rupee-Dollar exchange rate today is 84/$. If the forward rate for one year from today is 88/$, what must the US interest rate be?
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