The marginal product of labor in the econonomy is MPN=130-0.5N, and the supply of labor is 200+2w. N is the amount of labor and w is the real wage. What is the market clearing real wage and equilibrium employment What happens if the minimum wage is $9.00 How would a government imposed lump sum tax impact the real wage and labor market
The marginal product of labor in the econonomy is MPN=130-0.5N, and the supply of labor is 200+2w. N is the amount of labor and w is the real wage.
What is the market clearing real wage and equilibrium employment
What happens if the minimum wage is $9.00
How would a government imposed lump sum tax impact the real wage and labor market
Market clearing real wage is the real wage rate at which the quantity of labor supplied is equal to the quantity of labor demanded. It is the wage rate that balances the market for labor and eliminates any surplus or shortage of labor.
Equilibrium employment is the level of employment at the market clearing real wage. It is the number of workers that firms are willing to hire at the market clearing wage, and the number of workers who are willing to supply their labor at that wage.
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