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?
A) 0
B) 60
C) 80
D) 100
Correct Answer:
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