Chapter 1, Problem 6E

(a)

To determine

Determine the economic interpretation of $\overline{\text{a}}$

(b)

To determine

Determine the endogenous variable in this labor market model.

(c)

To determine

Explain the labor market equilibrium.

(d)

To determine

What happens to equilibrium wage and employment level if $\left(\overline{\text{l}}\right)$ increases.

(e)

To determine

What happens to equilibrium wage and employment level if $\left(\overline{\text{f}}\right)$ increases.