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onsider the following closed economy with a representative household, competitive rms, and a government. At any date , the household can choose how to allocate
onsider the following closed economy with a representative household, competitive rms, and a government. At any date , the household can choose how to allocate one unit of time between labor (L ) and leisure (1 L ) given the real wage rate (w ). The household faces the budget constraint C B = w L (1 r 1)B 1 T
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
