Suppose the marginal product of labor is , where Y is 12, and L is the quantity of workers. The supply of labor is given by L = 110 + 2.5 ∗ w. Calculate the changes that occur in (a) employment, (b) unemployment, and (c) the size of the labor force, when the real wage declines from 45 to 42.

Question

Suppose the marginal product of labor is  , where Y is 12, and L is the quantity of workers. The supply of labor is given by L = 110 + 2.5 ∗ w. Calculate the changes that occur in (a) employment, (b) unemployment, and (c) the size of the labor force, when the real wage declines from 45 to 42.

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The Answer of Suppose the marginal product of labor is  , where Y is 12, and L is the quantity of workers. The supply of labor is given by L = 110 + 2.5 ∗ w. Calculate the changes that occur in (a) employment, (b) unemployment, and (c) the size of the labor force, when the real wage declines from 45 to 42.

Suppose the Marginal Product of Labor Is , Where