Business, 17.06.2020 05:57 tyturbo7

Continue to assume that no other outside influences on the economy of Hawkland occur. Return to the graphs that you drew and show the economy of Hawkland in the long run. Label any relevant new curves with a two subscript (2) and use a two in a circle (k) to label the long run equilibrium. Answer the following questions regarding the the long run. Answers that say "increases" or "decreases" or similar without any further explanation will not receive credit. I do not need lengthy answers, but I need enough to demonstrate that you understand how the model works. Requried:
a. What happens to the money wage and why? Explain and provide a numerical example.
b. What happens to the price level and real GDP? Explain.
c. What happens to the real wage? Explain and show your calculation. Explain and provide a numerical answer.
d. What happens to the unemployment rate? Explain and provide a numerical answer.

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Continue to assume that no other outside influences on the economy of Hawkland occur. Return to the...

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