Midterm 2 Yicheng Ren Mathematics & Economics Essay

Economics 370-Labor Economics Department of Economics, State University of New York at Albany Spring 2020 Midterm Exam 2 Read this document carefully, and then follow the instructions in bold. Please type your answer to the test on a piece of paper according to the instructions. You can also create a separate page for your graphics. Please submit your documents through the blackboard assignment before the deadline and time (midnight on April 14), or mail me with a postmark on or before April 14. My address is: Jerry Marschke 80 Journey Lane Glenmont, NY 12077. But if you have any questions, please email me. Many places in the United States (and around the world) are blocked, non-essential business activities are ordered to be closed or curtailed, and people are prohibited or dissuaded from group tours and gatherings. The latest employment report released last Friday (https://www(dot)bls(dot)gov/news.release/empsit.nr0.htm) Shows the early effects of this restriction on the labor market: the unemployment rate has experienced the largest monthly increase since January 1975. We all expect the situation to be worse in the employment report next month. Unemployment is likely to be concentrated among the less educated population (the figures in the report suggest this) and among the least able to bear unemployment. The proportion of people with lower education levels in those jobs that do not allow them to work at home may be too high (https://bfi(dot)uchicago(dot)edu/wp-content/uploads/BFI_WhitePaper_Dingel_Neiman_3.2020.pdf). To help Americans who lost their jobs during the flu pandemic, Congress passed the Coronavirus Assistance, Relief, and Economic Security (CARES) Act last week, which greatly expanded the scope of unemployment relief. Unemployment insurance, usually managed at the state level, pays a worker ’s bursary to cover a portion of the wages previously lost. In the normal period, the successor of ordinary workers-the pre-layoff benefits of each part of the workers stipend-varies the country covered but on average only 50%.The Concern Act makes the unemployment insurance scheme more generous. First, it increases the maximum period of benefits from 29 weeks to 39 weeks, and secondly, it increases the allowance to bring the average replacement rate close to 120%. 130%). (See https://econofact(dot)org/- unemployed-and-essential-low-wage workers-after-care bill) That is to say, according to the care bill, most workers ’income after unemployment will be higher than their income at work. Although it may be premature to discuss what the post-pandemic recovery will look like, many people hope it will be “v-shaped”: GDP (gdp) declines sharply and then returns to normal quickly. The recovery from the economic recession from 2008 to 2009 was very slow, and some people called it an "L-shaped" recovery (the slow recovery after a rapid recession made the GDP time series look like the letter "L"). Suppose that the influenza pandemic subsides before summer, which is the end of the blockade. Compare the prospects for rapid economic recovery in the following three situations: (1) No unemployment insurance of any kind; (2) Unemployment insurance benefits before the pandemic level;(3) Unemployment insurance benefits under the "CARES Act". In your answer, use the labor supply model (a variant of leisure or household production). Other parts of the course may also be relevant to your answer. Your score will depend on whether your answer is concise; grammar; the quality, accuracy, and thoroughness of your argument, all of which must rely heavily on the models and concepts we have discussed in class. Limit your answer to one page (11 or 12 point font, 1 inch margin). Any number should be well marked and clearly available on a separate page. These can be hand drawn. Note that your answers must reflect your work, and only reflect your work
i want essay with graphs