Cobb-Douglas production function

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Recently, France's government has proposed to raise the retirement age from 62 to 64. Assume that a Cobb-Douglas production function is a good representation of France's economy, the substitution effect is stronger than the income effect, and that the economy was initially at equilibrium. Assuming all else is held constant and that the wage is flexible, given the change in the labor market, what will happen to the marginal productivity of labor if the legislation passes?

Recently, France's government has proposed to raise the retirement age from 62 to 64. Assume that a Cobb-Douglas production function is a good representation of France's economy, the substitution effect is stronger than the income effect, and that the economy was initially at equilibrium. Assuming all else is held constant, if the real wage is sticky/rigid, what will happen to the equilibrium real wage rate and quantity of labor if the legislation passes?

Recently, France's government has proposed to raise the retirement age from 62 to 64. Assume that a Cobb-Douglas production function is a good representation of France's economy, the substitution effect is stronger than the income effect, and that the economy was initially at equilibrium. Assuming all else is held constant, how would this shock be drawn in the AD-SRAS-LRAS model if the legislation passes and the real wage was flexible.

Recently, France's government has proposed to raise the retirement age from 62 to 64. Assume that a Cobb-Douglas production function is a good representation of France's economy, the substitution effect is stronger than the income effect, and that the economy was initially at equilibrium. Assuming all else is held constant, if the real wage is completely flexible, what will happen to the equilibrium real wage rate and quantity of labor if the legislation is passed?

Reference no: EM133985652

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