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Market labour demand is = 800,000 35,000 and market labour supply is = 50,417 225,004. Show your calculations for the initial equilibrium wage and employment.
Market labour demand is = 800,000 35,000 and market labour supply is = 50,417 225,004. Show your calculations for the initial equilibrium wage and employment. Then, consider a wage subsidy given to firms that establishes the new equilibrium wage at $18. Show your calculations for new employment with the subsidy, the subsidy itself, and government expenditure
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