Question
1.Suppose the MPN in the economy is given by MPN = A (200 - 0.5 N ), while the supply of labor is N =100
1.Suppose the MPN in the economy is given byMPN= A (200 - 0.5N), while the supply of labor isN=100 + 2w.
(a)Assume A=1. Find thelabormarket-clearing real wage rate.
(b)Whatwouldhappen if the government imposes a minimum wage of80?Is there involuntary unemployment?If so, calculate the amount of theunemployment.
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Principles Of Financial Accounting
Authors: John J Wild, Ken W Shaw, Barbara Chiappetta
22nd Edition
0077632893, 9780077632892
