13 May HOW DO LABOUR MARKETS AFFECT WORKERS’ BARGAINING POWER
Hello, I am looking for someone to write an essay on Macroeconomics Models. It needs to be at least 1500 words. The LM curve is derived from the assumption that money supply is not a function of interest rates and therefore given certain levels of money supply we can determine when the monetary at which levels the monetary sector is at equilibrium. the LM curve is derived as follows:The above diagram shows the derivation of the LM curve, MS represents money supply, When there is an increase in national income from Y1 to Y2 then this will shift the money demand schedule to the right from MD1 to MD2 and for the purpose of attaining equilibrium in the money market interest rates will shift from IR1 to IR2 and this relationship helps us to derive the LM curve above.A policy mix is the use of both fiscal and monetary policies, fiscal policies include the use of government expenditure while the monetary polices include money supply. An example is where the government reduces expenditure, this will shift the IS curve to the left and because and the monetary policy measure here would be to decrease interest rates from IR1 to IR2 in order to push back the economy to the natural rate of output Yn.From the above diagram when the government decrease its spending this shifts the IS curve to the left from IS1 to IS2, this will lead the monetary policy makers to decrease the interest rates for this reason the new equilibrium will be at Yn and IR2.Economists view the labour market as any other mark… A policy mix is the use of both fiscal and monetary policies, fiscal policies include the use of government expenditure while the monetary polices include money supply. An example is where the government reduces expenditure, this will shift the IS curve to the left and because and the monetary policy measure here would be to decrease interest rates from IR1 to IR2 in order to push back the economy to the natural rate of output Yn.From the above diagram when the government decrease its spending this shifts the IS curve to the left from IS1 to IS2, this will lead the monetary policy makers to decrease the interest rates for this reason the new equilibrium will be at Yn and IR2. 3. How do labour markets affect workers’ bargaining powerEconomists view the labour market as any other market whereby labour has its own demand and supply, when the supply of labour is high then wage rates are low and on the other hand when the demand for labour is high then the wage rates increase. Therefore the demand and the supply will determine the equilibrium wage rates in an economy and also determine the workers bargaining power. 4. What is meant by the efficiency wage and what does it imply about the clearing of the labour market Efficiency wage is a concept that states that wage rates are not only determined by the supply and demand of labour and for this reason there is need to pay a higher wage rate to employees to increase efficiency and productivity of labour. This concept therefore states that wage rates should be set higher than the market clearing rate in order to achieve efficiency which is achieved through the higher pay than the market clearing.5.
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.