What Is the Empirical Formula for a 100-G Sample Containing

Question 65
Essay

Suppose the marginal product of labor in the economy is given by MPN = 200 - 0.5 N,while the supply of labor is 100 + 4w. (a)Find the market-clearing real wage rate. (b)What happens if the government imposes a minimum wage of 40? Is there involuntary unemployment? (c)What happens if the government imposes a minimum wage of 60? Is there involuntary unemployment?