Part 2 - Question 4 · Introducció a la Macroeconomia UPF 2018
Tema: Mercat de treball i atur · Del examen Final Exam - April 2018 (2018)
Enunciado
Part 2
Part 2 - Question 4 (0.25 points). Labor market reform and marginal propensity to consume
Suppose that in a given country a labour market reform, which decreases employment protection, decreases confidence about future income:
Solución
Según los criterios oficiales de corrección
Suppose that in a given country a labour market reform, which decreases employment protection, decreases confidence about future income:
Solución: b. The marginal propensity to consume will decrease so that output decreases in the short term. However the natural rate of unemployment might decrease.
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