I have some problems that I just can't figure out for my labor market econ class. If anyone could help me figure out where to start that would be great. Mostly I need help making the correct graphs.
Note: I'm not asking for answers, I gotta learn this anyway so I'm more asking for help than just an answer.
Here are the problems:
1. While discussing our model for the long-run demand for labor, one of the extreme cases we encountered was that of “perfect complements”. Assume that capital becomes more expensive. Illustrate (in a diagram) and comment on the scale and substitution effects that result.
A recent study published the following regression results:
Hi = 45.8 - 0.5 * GDPi ,
where Hi is average hours of work for employed workers in country i, and GDPi is real GDP per capita, measured in thousands of dollars.
How can we interpret this result?
this country’s GDP must be pretty low, or people must be working very low hours.
The standard error for the coefficient on “GDP per capita” was 0.1. What additional information does this give us?
I know it's a long shot but maybe somebody else majoring in econ can help me.