What is the price level and what is the wage

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Reference no: EM13223215

Consider an economy with the production function Y= L^(1/3)

a) Derive the Labor demand Curve

b) If Labor supply curve is L^s= (w/p) , calculate the equilibrium levels of real wage, labor and output.

c) Assume M^s=45 and k=3 . What is the equation of the aggregate demand curve for this example? What is the price level? What is the wage?

Reference no: EM13223215

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