Question
Suppose the marginal product of labor is MPN = 200 - 0.5N where N is aggregate employment. The aggregate quantity of labor supplied is 100
Suppose the marginal product of labor is
MPN = 200 - 0.5N
where N is aggregate employment. The aggregate quantity of labor supplied is 100 + 4w, where w is the real wage. The government imposes a minimum wage of 60. How much unemployment will this create
among unskilled labor?
Select one:
a. 0
b. 60
c. 80
d. 100
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The Levelling What's Next After Globalization
Authors: Michael O'Sullivan
1st Edition
1541724089, 9781541724082
