Consider the production function F (K, L) = 9K+10L. Assuming the market for labor is perfectlycompetitive, the real wage is equal to90 Suppose that the steady-state unemployment rate is13%. The number of vacancies relative to the laborforce is 5%. Moreover, the separation rate is 3% permonth. If the matching function in the labor markettakes the form A√U√V then the efficiencyparameter of the matching technology (A) is equal to(Please round your answer to the nearest 2 decimalplaces.)45

Real wages are wages that have been adjusted to account for inflation, or salaries that are…

Answered: Consider the production function F (K,…

Consider the production function F (K, L) = 9 K+10L. Assuming the market for labor is perfectly competitive, the real wage is equal to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Consider the production function F (K, L) = 9
K+10L. Assuming the market for labor is perfectly
competitive, the real wage is equal to
90

Suppose that the steady-state unemployment rate is
13%. The number of vacancies relative to the labor
force is 5%. Moreover, the separation rate is 3% per
month. If the matching function in the labor market
takes the form A√U√V then the efficiency
parameter of the matching technology (A) is equal to
(Please round your answer to the nearest 2 decimal
places.)
45

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