=+h. Suppose that, as in the earlier part of the problem, b 5 0.5 and the workers

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=+h. Suppose that, as in the earlier part of the problem, b 5 0.5 and the worker’s leisure endowment is again normalized to L 5 1. Use the solution for the equilibrium wage in the text to derive the equilibrium wage now, again normalizing the output price to 1.

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