Determine consumption-employment-output and leisure
Course:- Business Economics
Reference No.:- EM13891918

Assignment Help
Assignment Help >> Business Economics

How would i solve, Macro Economics (Williamson 5e), Chapter 5: Mathematical Appendix, Problem #1

For the closed-economy, one-period model, suppose that

U (C, l) = ln (C) + β × l, and

F (K, N) = zK^αN^ (1−α) , where β > 0, and 0 < α < 1. Determine consumption, employment, output, leisure, and the real wage in a competitive equilibrium, and explain your solutions. Also, in this problem, show that the competitive equilibrium allocation is Pareto optimal.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Given the following regression equation with t-statistics in parentheses: Salary = 566,400 + 71,928 Goals + 20,403 Assists + 98,430 All-Star (3.45) (2.96) (3.5) (1.30)R2 = 0.9
Given today’s fierce global competitive environment, a decrease in mandatory payments by employer to health care companies and providers for overhead health care benefits for
Assume that b=1 and that initially the real interest rate is equal to the marginal product of capital at 4%. As well, assume that v=1/2 and that the inflation rate last period
In April, eggs cost $2 per dozen, wine costs $1 per bottle, your income is $120, and you buy 50 dozen eggs. In May, eggs cost 50 cents per dozen, wine still costs $1 per bottl
Suppose a business experiences a sudden increase in its fixed costs. For example, suppose property taxes increase dramatically. What impact, if any,  What changes, if any, is
Practice the classical and the Keynesian arguments on unemployment and the labor market: With a labor market diagram, illustrate how a classical thinker explains higher-than-d
If taxes were cut by 1 trillion adn the mpc was .8 how much would total spending. Increase in the first year with two spending cycles? Increase over an infinite time perios?
Illustrate what do economists call the percentage change in real GDP from year to the next. Under a business agreement 70/30 why should the 70% shareholder decision carry all