Question
Consider the simple supply-and-demand model of the labor market with the following supply and demand functions: Ls=a+bw Ld=c+dw a. Assuming thata=0,b=0.3,c=18,andd=0.15, computethe market-clearing level of
Consider the simple supply-and-demand model of the labor market with the following supply and demand functions:
Ls=a+bw
Ld=c+dw
a.
Assuming thata=0,b=0.3,c=18,andd=0.15, computethe market-clearing level of employmentL=Ls=Ld.
Round your answer to the nearest tenth.
b.
Using the same function and parameter values, compute the market-clearing wage.
Round your answer to the nearest tenth.
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Foundations of Macroeconomics
Authors: Robin Bade, Michael Parkin
6th edition
132831007, 978-0132831000
