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Consider the flexible-wage model where the production function is Y = 20 N1/2 and the supply of labour is W = N1/2 / 10. What
Consider the flexible-wage model where the production function is Y = 20 N1/2 and the supply of labour is W = N1/2 / 10. What is the equation for the AS curve in this economy?
A) Y = 200 P^(1/2)
B) Y = 200 P^(-1/2)
C) Y = 200 P
D) Y = 200
E) None of the above.
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