The wage determination equation is given by: W = P (2 - utz) We know that goods are produced according to production function of the form: Y = 2N and average markup in the economy equals 50%. Using this information solve following problems: a) Find price-setting equation b) Find natural rate of unemployment. c) Find AS curve, if labor force equals 20 d) Find natural level of output e) Present how decrease in expected level of prices affects AS curve