Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 1308–21Wa L, = 1215–22W, where Lis labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 501 workers who are willing and able to work in either sector. Round answers to two places after the decimal when necessary. In addition, workers have a reservation wage of 48.02 pesos that is, rather than taking a job at a wage below 48.02 pesos, they would rather wait for a 52.02 peso union job to open up. e. Calculate the wage and employment in each sector. What is the economy's unemployment rate? Wage in the manufacturing sector: workers Wage in the service sector: pesos Employment in the manufacturing sector: workers Employment in the service sector workers Unemployment Rate:

Consider an economy with two sectors: manufacturing and services. Demand for labor in manufacturing and services are described by these equations: Lm = 1308–21Wa L, = 1215–22W, where Lis labor (in number of workers), W is the wage (in pesos), and the subscripts denote the sector. The economy has 501 workers who are willing and able to work in either sector. Round answers to two places after the decimal when necessary. In addition, workers have a reservation wage of 48.02 pesos that is, rather than taking a job at a wage below 48.02 pesos, they would rather wait for a 52.02 peso union job to open up. e. Calculate the wage and employment in each sector. What is the economy's unemployment rate? Wage in the manufacturing sector: workers Wage in the service sector: pesos Employment in the manufacturing sector: workers Employment in the service sector workers Unemployment Rate:

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Dynamic Change, Economic Fluctuations, And The Ad-as Model

Section: Chapter Questions

Problem 6CQ

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