EBK MACROECONOMICS
10th Edition
ISBN: 9780134896571
Author: CROUSHORE
Publisher: VST
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Question
Chapter 11, Problem 5NP
a.
To determine
To derive: The equation that provides a relation between the real wage and the amount of labor demanded by the firms.
b.
To determine
For the nominal wage of 20, derive the relation between price level and the amount of labor demanded by firms.
c.
To determine
To describe: The relationship between price level and the amount of output supplied by the firms and put it on the graph.
Supposing that the IS and LM curves of the economy (the goods market and the asset
e.
To determine
To derive: The relationship between output, Y and P. Graph it on the same axis as the relationship between the price level and the amount of output supplied by firms, the
e.
To determine
To derive: The equilibrium values of price level, output, real wage, real interest rate, and employment.
f.
To determine
To describe: The equilibrium values of price level, output, employment, real wage and real interest rate if M is 135.
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Use wage-setting relation and price-setting relation to analyze the
question.)
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