Question
This equation represents the system of equations used to solve the competitive equilibrium between firms, consumers, and government. My instructions for this part of the
This equation represents the system of equations used to solve the competitive equilibrium between firms, consumers, and government. My instructions for this part of the problem are "Derive the effect of changes in government expenditures (g) on employment. What is the sign of the response of employment? (you may assume separability of utility to make things easier at this point)" ... i know we must use chain rule for derivatives (ex: y(x(z))? = y?(x(z))x?(z) ) but im having trouble with deriving wrt to government (g). Please let me know if you can help. Ul refers to marginal utility wrt leisure and Uc refers to marginal utility wrt consumption.
Up ( F ( K, N) + K - q, () ) - EN ( K N ) UC ( F ( K. N ) + K-g. 1Step by Step Solution
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