Exam Time – I should make it clear that you’ll probably not get exactly (or all that close) to this problem. Thus focus on the steps you take toward a solution. Also, review Oct 18 lecture notes.
For how Equilibrium Labor is affected by positive income tax – I’m going to use the equilibrium labor demand equation,
Graphically, you also want to show figure 7.4 on page 171. d.
And we know that labor supplied equals labor demanded. So you should solve the e. Wages: Labor Demand: Which should equal Labor Supplied: |
Teaching - Curtis Kephart > Econ 100B Intermediate MacroEconomics (Homework and exam examples) > Labor Market - Exam Review >