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Assume the marginal product of labor ( MPL ) is given by M P L = A 2 K L 2 Where A is a
Assume the marginal product of labor MPL is given by
Where A is a parameter that captures technology. Assume that and the labor supply in the economy is
Assume that for this question. Say that the government approves a legislation that mandates a minimum real wage of With the new legislation, the number of unemployed workers in the economy is
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