This preview shows page 1. Sign up to view the full content.
Unformatted text preview: Label the axes, the curves and the equilibrium wage and quantity of labor b. Use the value for N that you calculated in part (a) to find the equilibrium level of output Y. Then draw a graph of the production function. Show the general shape of the production function, label the axis, the curve, and the equilibrium values of Y and N. c. Use the value for Y that you found in part (b) to construct the desired savings formula as a function of r. d. Solve for the goods market equilibrium: what are the equilibrium values of r and investment? Graph the goods market equilibrium. Show and label the desired investment and desired savings curves. Show and label the equilibrium values and label the axes. e. Solve for the asset market equilibrium price level....
View Full Document
- Fall '07