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Suppose that the marginal product of labor curve (measured in real terms) is given by MPN = 249 - 2N and the Labor Supply Curve
Suppose that the marginal product of labor curve (measured in real terms) is given by MPN = 249 - 2N and the Labor Supply Curve is given by N = 92 + 6w (w is the real wage). Assuming that firms maximize profits, and that the labor market clears (i.e. prices and wages have fully adjusted), what is the equilibrium real wage and the equilibrium full-employment level of N (in equilibrium Ns=Nd=N)? I.e. calculate equilibrium N and w. Show work
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