Question
Q.2. Consider the utility function with one consumption good q and one type of leisure q0 U= olog(qo)+ log(q) with o + = 1 (a)
Q.2. Consider the utility function with one consumption good q and one type of leisure q0
U= olog(qo)+ log(q) with o + = 1
(a) Derive complete labour supply function. (b) Under what condition the labour supply curve will be negatively sloped. (c) Show mathematically and diagrammatically the decomposition of total effect.
Please give diagram
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Macroeconomics
Authors: Andrew B. Abel, Ben S. Bernanke, Dean Croushore, Ronald D. Kneebone
6th Canadian Edition
321675606, 978-0321675606
