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What is the competitive equilibrium solution for labour? fConsider the one-period macroeconomic model. Output, Y, is given by Y=Z N, where z is total factor

What is the competitive equilibrium solution for labour?

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\fConsider the one-period macroeconomic model. Output, Y, is given by Y=Z N, where z is total factor productivity and N is labor demand. The household has time constraint h=Ns+l, where h is the time endowment, I is leisure, and Ns is labor supply. Households supply labor, receive wage, w, and pay lump sum taxes, T. Suppose households' preferences are represented by perfect compliments where preferences for consumption, c, and leisure follow: c=d l. Where d is some constant. What is the competitive equilibrium solution for labor, N*? ON* = (h d+G)/(d+z) ON* = (h z+G)/(d+z)

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