Suppose the Marginal Product of Labor Is ,Where Y

question 81

Essay

Suppose the marginal product of labor is ,where Y is 12,and L is the quantity of workers.The supply of labor is given by L = 110 + 2.5 × w.Calculate the changes that occur in (a)employment, (b)unemployment,and (c)the size of the labor force,when the real wage declines from 45 to 42.

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Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation where an asset's book value is reduced by twice the straight-line depreciation rate.

Depreciation Record

Depreciation Record is a detailed account of the depreciation amounts allocated over the life of an asset, which impacts the value of the asset on the balance sheet and the depreciation expense on the income statement.

150%-Declining-Balance

A method of accelerated depreciation, applying 150% of the straight-line rate to the declining balance of an asset, used to allocate larger depreciation expenses in the earlier years of an asset’s life.