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Productivity and real wages

Dear OTA: Please help me complete this task. These are the questions I need answered but I sent an attachment through to that explains what I ultimately need done. Thank you so much!!!!

? Please describe the concepts of full employment, inflationary gaps, and recessionary gaps.
? Please identify and describe the current level of unemployment in terms of current and potential GDP.
? Following the change in productivity, describe the likely changes to equilibrium output, prices, and the unemployment level.


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Theoretically, full employment occurs when all available resources are used to produce goods and services. This goal is commonly indicated by the employment of labor resources. However, in reality some unemployment will occur even when the economy is at capacity. This is because people change jobs for a variety of reasons, and those who are between jobs are considered unemployed. So, for practical purposes full employment when the unemployment rate is around 5 to 5 1/2 percent. This is also referred to as the natural rate of unemployment.

We use demand and supply curves to analyze the economy. In the short-run, aggregate supply is assumed to be upward sloping but in the long run it is seen as vertical (see attached file "economy" at the point where the economy is at full employment. LRAS corresponds to when all available factors of production are fully employed. Thus it is vertical, meaning that no other factors of production are available to the economy. "Short ...