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Unformatted text preview: output (Y). What do you get for Y? A. 910 B. 960 C. 1000 D. What are you talking about? I'm so confused! Answer: B Now, consider what happens when nominal wage increases. Continuing with: Y=A(20N.5N^2), MPN=A(20N), A=5, and P=$10, what happens when nominal wage increases to $250. Calculate real wage, employment (N), and output (Y). 4. Employment (N) is A. 10 B. 15 C. 20 D. Nope. Still confused. Answer: B 5. Output (Y) is A. 937.5 B. 910 C. 877.5 D. Like I said . .. Still don't get it. Answer: A No consider what happens when A increases. Remember that A is productivity. So, say that productivity increases by 100%, which means that A=10. We have: Y=A(20N.5N^2) MPN=A(20N) W=$200 (back to the original) P=$10 6. Calculate employment (N) and output (Y). A. N=16 and Y=1920. B. N=17 and Y=1995. C. N=18 and Y=1980. D. Nope. Light bulb in my brain is not turning on. Answer: C...
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 Fall '07
 STONE,MISTYRIANO,ALEJANDRO
 Macroeconomics

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