Given the production function, Y = AKaL(1-a) assume that a = 1/3. The labor supply equation is LS = 60*w - R In TABLE ONE, each column represents a labor market in medium-run equilibrium. In column two, an increase in on-the-job-search (OJS) has shifted labor supply to the right. In column three, workers' awareness of higher productivity has shifted labor supply back to the left. 1. Complete TABLE ONE. [Round w to two decimal places.] W = 2/3Y L TABLE ONE Y A K L W R (u) 1 (a) (b) 6000 398 8.23 (c) 21 2 5444 (d) 6000 (e) 8.54 70 (f) (u) = ßw-L-R 3 (g) 5.3 6000 415 (h) 75 (i)

Given the production function, Y = AKaL(1-a) assume that a = 1/3. The labor supply equation is LS = 60*w - R In TABLE ONE, each column represents a labor market in medium-run equilibrium. In column two, an increase in on-the-job-search (OJS) has shifted labor supply to the right. In column three, workers' awareness of higher productivity has shifted labor supply back to the left. 1. Complete TABLE ONE. [Round w to two decimal places.] W = 2/3Y L TABLE ONE Y A K L W R (u) 1 (a) (b) 6000 398 8.23 (c) 21 2 5444 (d) 6000 (e) 8.54 70 (f) (u) = ßw-L-R 3 (g) 5.3 6000 415 (h) 75 (i)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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