Given: c = 0.75 y = $40 w= $20 I = $1,000m G=$500 Labor force = 100m hours a) N* = ? b) Y* = ? c) Suppose that on average a worker works 2,000 hours per year (500 workers = 1 million hours). By how much would government spending have to go up to increase employment by 10,000 workers?

Given: c = 0.75 y = $40 w= $20 I = $1,000m G=$500 Labor force = 100m hours a) N* = ? b) Y* = ? c) Suppose that on average a worker works 2,000 hours per year (500 workers = 1 million hours). By how much would government spending have to go up to increase employment by 10,000 workers?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter14: Medical Care Systems Worldwide

Section: Chapter Questions

Problem 4QAP

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Question

Given:
c = 0.75
y = $40
w= $20
I = $1,000m
G= $500
Labor force = 100m hours
a) N* = ?
b) Y* = ?
c) Suppose that on average a worker works 2,000 hours per
year (500 workers = 1 million hours). By how much would
government spending have to go up to increase
employment by 10,000 workers?

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