Suppose that the demand for labor in manufactured goods is equal to 100 Ly and that the

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Suppose that the demand for labor in manufactured goods is equal to 100 Ly and that the demand for labor in agriculture is equal to 80-L. There are 100 workers in the economy.

a. What is the equilibrium wage?

b. What is the loss in national income if the manufacturing wage is set at 50, but there is full employment?

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International Economics Theory & Policy

ISBN: 9780138002121

8th Edition

Authors: Paul R Krugman, Maurice Obstfeld

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Question Posted: Oct 02, 2024 06:01 AM

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Suppose that the demand for labor in manufactured goods is equal to 100 Ly and that the

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International Economics Theory & Policy

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