Wages, Productivity, and Aggregate Supply

Wages, Productivity, and Aggregate SupplyThis application gives you the opportunity to examine recent trends in measures of the overall wages and productivity of workers.Title: Bureau of Labor Statistics: Economy at a GlanceNavigation: Use the link at http://stats.bls.gov/ to visit the Bureau of Labor Statistics Web site.Application: Perform the indicated operations, and answer the following questions.Under “Latest Numbers” click on Employment Cost Index. What are the recent trends in wages and salaries and in benefits? In the long run, how should these trends be related to movements in the overall price level? ExplainBack up to the home page, and under “Latest Numbers” click on Productivity. How has labor productivity behaved recently? What does this imply for the long-run aggregate supply curve? ExplainBack up to the home page, and now under “Latest Numbers” click on Unemployment and then on Employment Situation Summary. Does it appear that the U.S. economy is currently in a long-run growth equilibrium? Explain

 

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