Unemployment and the Labor Market-Work It Out: Question 2 Consider an economy with the Cobb-Douglas production function: Y 4K3L0 K-120000; L-8000 Round answers to two places after the decimal when necessary. a. Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock. Labor demand w 335.54K+W 335.34K w AK
Unemployment and the Labor Market-Work It Out: Question 2 Consider an economy with the Cobb-Douglas production function: Y 4K3L0 K-120000; L-8000 Round answers to two places after the decimal when necessary. a. Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock. Labor demand w 335.54K+W 335.34K w AK
Chapter1: Making Economics Decisions
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Unemployment and the Labor Market-Work It Out: Question 2
Consider an economy with the Cobb-Douglas production function:
Y=4K3L0
K-120000; L-8000
Round answers to two places after the decimal when necessary
a. Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock.
Labor demand w
335.54K + W
115.548
w!
4K + W
b. The economy has 120000 units of capital and a labor force of 8000 workers. Assuming that factor prices adjust to equilibrate
supply and demand, calculate the real wage, total output, and the total amount earned by workers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5236f78-bfa3-4e0a-9f9f-494ca6c66ffe%2F32652d84-f396-46db-9c0a-0e4629bcbdb6%2Fkldnzre_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Stacked
D
Unemployment and the Labor Market-Work It Out: Question 2
Consider an economy with the Cobb-Douglas production function:
Y=4K3L0
K-120000; L-8000
Round answers to two places after the decimal when necessary
a. Derive the equation describing labor demand in this economy as a function of the real wage and the capital stock.
Labor demand w
335.54K + W
115.548
w!
4K + W
b. The economy has 120000 units of capital and a labor force of 8000 workers. Assuming that factor prices adjust to equilibrate
supply and demand, calculate the real wage, total output, and the total amount earned by workers.
![335.54K+W³
23554K
w
AK
w
4K + W
b. The economy has 120000 units of capital and a labor force of 8000 workers. Assuming that factor prices adjust to equilibrate
supply and demand, calculate the real wage, total output, and the total amount earned by workers.
Real wages = $
Total output=
units
Total amount earned by workers = $](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe5236f78-bfa3-4e0a-9f9f-494ca6c66ffe%2F32652d84-f396-46db-9c0a-0e4629bcbdb6%2Fkuxr2n_processed.jpeg&w=3840&q=75)
Transcribed Image Text:335.54K+W³
23554K
w
AK
w
4K + W
b. The economy has 120000 units of capital and a labor force of 8000 workers. Assuming that factor prices adjust to equilibrate
supply and demand, calculate the real wage, total output, and the total amount earned by workers.
Real wages = $
Total output=
units
Total amount earned by workers = $
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