Ch. 5/6 Trends

G

employment & GDP move with

everything else moves opposite

TFP (Z)

leisure & employment ambiguous

everything else moves with

shift in preference to C

no change in leisure intercept

ambiguous utility

employment & GDP increase

unemployment and wage decrease

shift in preference to L

no change in leisure intercept

ambiguous utility

employment and GDP decrease

unemployment and wage increase

G w/ TFP

ambiguous leisure and employment

everything else moves with

b

wage and employment move with

everything else ambiguous

Solow Residual

everything but unemployment moves with

unemployment moves opposite

k

employment moves with

everything else moves opposite

search efficiency

wage stays same

unemployment moves opposite

everything else moves with

worker bargaining power (unionization rates)

wage and employment move with

everything else ambiguous

change in G spending prediction:

actual

counter

pro

Change in Z prediction:

actual:

pro

pro