Consider an economy with the Cobb–Douglas production function: Y = 5K0.²L0.8 K = 130000; L=8000 Round answers to two places after the decimal when necessary. Assuming that Congress cannot dictate how many workers are hired at the mandated wage, calculate what happens to the real wage, employment, output, and the total amount earned by workers. Real wages = $ 6.94 %3D Employment : 48580.00 workers %3D Incorrect Total output 60719.33 units Incorrect

Consider an economy with the Cobb–Douglas production function: Y = 5K0.²L0.8 K = 130000; L=8000 Round answers to two places after the decimal when necessary. Assuming that Congress cannot dictate how many workers are hired at the mandated wage, calculate what happens to the real wage, employment, output, and the total amount earned by workers. Real wages = $ 6.94 %3D Employment : 48580.00 workers %3D Incorrect Total output 60719.33 units Incorrect

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 8P

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