should have happened to their real wage? d.In what units is the real wage in part(c)measu red? e.Suppose workers can move freely between being farmers and being barbers. What does this mobility imply for the wages of farmers and barbers? f.What do your previous answers imply for the price of haircuts relative to the price of food？ g.Who benefits from technological progress in farming-farmers or barbers? 3.a.According to the neoclassical theory,technical progress that increases the marginal product of farmers causes their real wage to rise. b.The real wage in(a)is measured in terms of farm goods.That is,if the nominal idollars then the real wage is W/PF,where PF is the dollar p rm goods of barbers is,he their real wage is unchanged. d.The real wage in(c)is measured in terms of haircuts.That is,if the nominal wage is in dollars,then the real wage is W/PH,where PH is the dollar price of a haircut. n move freely being farmers and being barbers,then they f.If the nominal wage W is the same in both sectors,but the real wage in terms of farm goods is greater than the real wage in terms of haircuts,then the price of haircuts must have risen relative to the price of farm goods. g.Both groups benefit from technological progress in farming 4.Explain the roles of monetary and fiscal policy in causing and ending hvperinflations. 4.A hyperinfation always moetary policy.That is,the price level ca grow h supply of 00g do not end d unless the government drastically reduces money growth.Thi explanation,however,begs a central question:Why does the government start and then stop printing lots of money?The answer almost always lies in fiscal policy:When the government has a large budget deficit(possibly due to a recent war or some other major event)that it can not fund by borro ne it resorts to printing money to pay its bills.And only when this fiscal problem is alleviated-by reducing government spending and collecting more taxes-can the government hope to slow its rate of money growth. 5.Describe the differ ence between frictional unem ployment and structual unemployment 5.Frictional unemployment is the unemployment caused by the time it takes to match workers and jobs.Finding an appropriate job takes time because the flow of information about job candidates and job vacancies is not instantaneous. should have happened to their real wage? d. In what units is the real wage in part(c)measured? e.Suppose workers can move freely between being farmers and being barbers. What does this mobility imply for the wages of farmers and barbers? f.What do your previous answers imply for the price of haircuts relative to the price of food? g.Who benefits from technological progress in farming—farmers or barbers? 3. a.According to the neoclassical theory,technical progress that increases the marginal product of farmers causes their real wage to rise. b.The real wage in(a)is measured in terms of farm goods.That is,if the nominal wage is in dollars,then the real wage is W/PF, where PF is the dollar price of farm goods. c.If the marginal productivity of barbers is unchanged,then their real wage is unchanged. d.The real wage in(c)is measured in terms of haircuts.That is,if the nominal wage is in dollars,then the real wage is W/PH,where PH is the dollar price of a haircut. e.If workers can move freely between being farmers and being barbers,then they must be paid the same wage W in each sector. f.If the nominal wage W is the same in both sectors,but the real wage in terms of farm goods is greater than the real wage in terms of haircuts,then the price of haircuts must have risen relative to the price of farm goods. g.Both groups benefit from technological progress in farming. 4.Explain the roles of monetary and fiscal policy in causing and ending hyperinflations. 4. A hyperinflation always reflects monetary policy.That is,the price level cannot grow rapidly unless the supply of money also grows rapidly;and hyperinflations do not end unless the government drastically reduces money growth. This explanation,however, begs a central question:Why does the government start and then stop printing lots of money? The answer almost always lies in fiscal policy:When the government has a large budget deficit(possibly due to a recent war or some other major event)that it can not fund by borrowing,it resorts to printing money to pay its bills.And only when this fiscal problem is alleviated—by reducing government spending and collecting more taxes—can the government hope to slow its rate of money growth. 5.Describe the difference between frictional unem￾ployment and structual unemployment. 5. Frictional unemployment is the unemployment caused by the time it takes to match workers and jobs.Finding an appropriate job takes time because the flow of information about job candidates and job vacancies is not instantaneous