How would each of the following likely affect long-run and/or short-run aggregate supply and employment in the macroeconomy?
a. An increase in the productivity of the labor force due to increased education
b. The coldest year in a century leads to frequent ice and snow storms
c. Major advances in computer and Internet technologies
Macroeconomics studies the top-down view of an economy. It analyses the impacts of events on macroeconomic factors such as employment and GDP. The analysis of the market on an aggregate level helps the policymaker to plan for future growth and development.
Answer and Explanation: 1
An increase in the productivity of the labor force due to an increase in education will impact aggregate supply positively but employment may...
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fromChapter 4 / Lesson 9
Understand the definition of macroeconomics and what macroeconomics focuses on. Learn the principles of macroeconomics, including economic output, economic growth, unemployment, inflation and deflation, and investment.