Assume the local labor demand curve is given by w=200-2L and the current wage is w=40.

a) What is the equilibrium quantity of labor employed?

b) Now assume a crucial industry enjoys a significant increase in exports. As a result, and in the long run, the employed quantity of labor grows by 20. What is the new labor demand curve?

c) What is the implied labor multiplier (assuming that wages don't change) if the initial impulse X equaled 14.2.

d) Given the labor demand curves from above and from part (b), assume now that wages are not constant but given by the labor supply curve w=0.5L. What is the resulting increase in L? What is the resulting multiplier assuming X equaled 14.2 again?