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Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 1314-20W
Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 1314-20W L, 1219-22W, where L is labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 501 workers who are willing and able to work in either sector. Since the number of workers employed cannot be fractions and must be whole numbers, round answers for the values of employment to the nearest whole number. Round all other answers to two places after the decimal when necessary. In addition, workers have a reservation wage of 49.38 pesos that is, rather than taking a job at a wage below 49.38 pesos, they would rather wait for a 53.38 peso union job to open up. e. Calculate the wage and employment in each sector. What is the economy's unemployment rate?
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