StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Macroeconomic Stabilisation in Regards to Labor Market - Essay Example

Comments (0) Cite this document
Summary
This paper outlines difficulties in achieving the equilibrium position on the labor market, with the use of different macroeconomic concepts and theories. The presence of high unemployment rate is considered a major problem in the local and international labour markets.

Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.5% of users find it useful
Macroeconomic Stabilisation in Regards to Labor Market
Read TextPreview

Extract of sample "Macroeconomic Stabilisation in Regards to Labor Market"

Download file to see previous pages 139 – 140). Aside from believing that there is a perfect labour market among the firms, employers and employees, classical economists assumed that equilibrium within the labour market is possible because of the presence of monetary wages or wage-price flexibility that could make supply and demand curve adjust with the changes in labour markets in order to remove or eliminate the presence of excessive supply and demand for labour (Rossana, 2011, p. 370; Gupta, 2008, p. 273; Ahiakpor, 2003, p. 160). Given that there is profit maximization or profit seeking behaviour on the part of the local business group; demand for labour is often represented by a downward-sloping curve since these companies are less likely to employ a lot of high-paid employees as compared to low-paid employees (Rossana, 2011, p. 370). On the other hand, the aggregate supply curve for labour is represented by a vertical curve (Rossana, 2011, p. 371). Specifically the classical theory on labour market is often based on the Walras’ and Say’s law which strongly suggests the idea that the labour supply is capable of creating its own demand through the use of price or wage adjustments (Gupta, 2008, p. 273). Likewise, the issue on real wage and employment level is determined by the movements in the supply and demand curve within the labour markets. Contrary to the beliefs of Keynesian economists, classical theorists strongly believe the presence of unemployment rate is a result of unforeseen economic disturbance which can be easily solved as soon as an adjustment between the supply and demand curve occurs. Since the presence of job-seekers who refuse to accept lower wage rate are classified as ‘voluntary’ unemployment, classical economists assume that there is always full employment in...
This essay offers a comprehensive analysis of macroeconomic concepts that characterize economic conditions in the labour market. This paper makes use of economic principles and theories in discussing why aggregate labor market as a clearing market is difficult to achieve.
In the study of macroeconomic theories, the interrelation between the labour markets, the goods market, money market, and the foreign trade market is being taken into consideration in order to determine the interaction between the levels of employment, employees’ participation rate, aggregate income, and gross domestic product.
In a market clearing situation, the quantity of labour demanded is expected to be equal to the quantity of labour services supplied by the employers. Aside from believing that there is a perfect labour marketclassical economists assumed that equilibrium within the labour market is possible because of the presence of monetary wages or wage-price flexibility that could make supply and demand curve adjust with the changes in labour markets in order to remove or eliminate the presence of excessive supply and demand for labour.
The labour market will remain unclear because of imperfect labour market conditions which is often triggered by the presence of economic factors that continuously affect the movements in the supply and demand curve in labour markets. The study of macroeconomics in labour market strongly suggest that full employment is close to impossible to achieve, because of the presence of macroeconomic factors.
...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Macroeconomic Stabilisation in Regards to Labor Market Essay”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1416238-macroeconomic-stabilisation-in-regards-to-labor-market
(Macroeconomic Stabilisation in Regards to Labor Market Essay)
https://studentshare.org/macro-microeconomics/1416238-macroeconomic-stabilisation-in-regards-to-labor-market.
“Macroeconomic Stabilisation in Regards to Labor Market Essay”, n.d. https://studentshare.org/macro-microeconomics/1416238-macroeconomic-stabilisation-in-regards-to-labor-market.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Macroeconomic Stabilisation in Regards to Labor Market

Clothing Retail Market in General

The industry is оverwhelmed with cоmpetitiоn frоm cоmpаnies which hаve invested in hi-tech mаchinery leаding tо greаter efficiency оr hаve plаced their prоductiоn tо fаctоries in cheаp lаbоur cоst cоuntries tо prоduce their prоducts. Hоwever, mоst pаrt оf the cоmpаnies in this sectоr mаke nоt very high prоfits. Tо increаse the mаrket shаre in this аrenа is nоt аn eаsy tаsk, аnd therefоre it needs а greаt deаl оf endeаvоur, knоwledge, аs well аs energy аnd mоney.
Clоthes retаilers fаll intо twо brоаd cаtegоries: firstly, thоse selling оwn-brаnd clоthing аnd, secоndly, thоse selling third-pаrty weаr. Mаjоr retаilers such аs Mаrks & Spencer аnd the Аrcаdiа Grоup аre gооd exаmples оf the first grоup, аs аre chаin оperаtiоns s...
18 Pages(4500 words)Research Proposal

Market Analysis and Segmentation: JetBlue Airways

It is for this reason that JetBlue management painstakingly handles the services and amenities that the company offers. They present very competitive technology as far as providing comfort to their passengers is concerned. Destination-wise, JetBlue Airways may be considered a specialty carrier that is relegated to a short-haul concentration, taking advantage of similar economies available with advanced technology and updated equipment. A short-haul carrier, JetBlue operates efficiently by consolidating services and economies of scale. Consequently, as a short-haul carrier, JetBlue’s revenues are considerably high compared to other airline companies.

In 2003, JetBlue declared a profit of $ 17.6 M for its first quar...
6 Pages(1500 words)Case Study

Child Labor

The historical record of child labor statistics shows that child labor was at its peak in the USA in 1910. In 1880 there were 1,118,356 (or 16.5%) children between ten to fifteen years of age who were involved in strenuous physical work. In 1900 their number rose to 1,750, 178 (or 18.2%). In 1910 the number yet again rose to a record height of 1,990,225 or 18.4% (Fuller, 1923). Although the situation has improved a lot still even today America is not free from the evil of child labor. In a prosperous country like the USA, approximately 500,000 children work in the fields every day. These include children as young as five years old who work approximately 70 hours a week to support their families economically (Children in the Fields...
12 Pages(3000 words)Assignment

Starbucks in Chinese Market

In the year 1996, the coffee giant marked its global presence. Up until 2004, the Chinese government prohibited Starbucks to operate its own stores in China. As a result, the coffee giant enters the Chinese market by joint-venturing with Chinese food and beverage companies and licensing other companies to own and operate its stores--differs from its domestic approach. But the company was able to easily overcome its initial obstacles and marked its presence in China very quickly and successfully with great brand recognition and customer satisfaction. The company also tailors its stores to match the local atmosphere. This is a transnational strategy. “For example, the Starbucks strategy in Shanghai is to attract middle to high...
7 Pages(1750 words)Case Study

The Challenges of Foreign Market

Any multinational company is exposed to risks such as change of foreign currency exchange rate, commodity prices, and interest rates because it denominates its transactions in foreign currencies. That’s why there is also some uncertainty in future earnings, liabilities and assets values.
Therefore, before taking a decision on the country of entry, a profound analysis of its current political and economical situation is to be performed. According to Kotler and Armstrong (351-361), a decision on whether to enter a foreign market should be based on a profound analysis of potential risks and opportunities, as well as the company’s internal resources.
The company is a Limited Liability that exports roasted and gro...
11 Pages(2750 words)Case Study

Oil Prices by OPEC and Market Fundamentals

Market failure is defined as the inefficient allocation of resources by the market, the free market is considered to optimally prices and resources in the production of goods and services, and this is because the price and quantity produced are determined by market forces which include the demand and the supply. The control of prices by a firm or an organization in the market results in market failure, therefore OPEC leads to market failure due to its nature in the market.

OPEC was formed in 1960 by 5 oil-producing countries which include Venezuela, Saudi Arabia, Kuwait, Iran and Iraq, The aim of this organization was to unify petroleum-producing countries in order to realize fair and stable prices of oil .other oil-pro...
6 Pages(1500 words)Report

Segmentation, Target Market, and Positioning of the Fortified Wine

There are some types of fortified wines which carry a rich legacy and ethos of the Australian culture and society. This rich history and distinct flavour can be utilised to penetrate growing markets like China and build a strong brand presence there when the market is relatively immature. Moreover, tweaking of marketing, distribution and pricing strategies would offer greater sales potential for the fortified wine industry itself in Australia.

Among the variety of wines that are available, the Australian wine industry offers an attractive bevvy of the following variants of red wine, white wine, vintage wine, sparkling wine, dessert wine and fortified wines.

The fortified wines are also termed as “liquid...
10 Pages(2500 words)Business Plan

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages(5000 words)Literature review

Intermediate Macroeconomics and Macroeconomic Coordination

...CHAPTER 04 (MACROECONOMIC COORDINATION) We know that when GDP, APE & ASF are unequal, than an interplay occurs (Macroeconomic coordination process) which bridges the gap between these variables. If there is a disparity between ADF & ASF, there will be an automatic reaction among money users & suppliers which restores the magnitude of these variables to equality generally known as funding adjustment. Similarly, if there is a difference in the values of GDP & APE, it will trigger the suppliers of goods & services to act together and bring the figure close to equality. This process is called output-price adjustment. The purchasers of the domestic output can be classified into three groups. Group 1 involves individuals having sufficient money...
6 Pages(1500 words)Assignment

Foreign Market Entry and Diversification

... which Modelo decided to capture the target market. Gambrinus was also an experienced distributor which was operating in other 25 states in the country. There was huge competition between these two distributors although they were not catering to the same geographical market. According to Modelo’s strategy, distributors were responsible for all activities regarding the transport, custom clearance, insurance, pricing strategy, advertising campaigns and sale of the beer. However Modelo reserved the right of final decision regarding the brand image. Furthermore a subsidiary named Procermex Inc. was set up by Modelo with the purpose of coordinating, supporting and supervising the two distributors of the company. The company maintained a healthy...
7 Pages(1750 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Macroeconomic Stabilisation in Regards to Labor Market for FREE!

Contact Us