Equilibrium level of employment, measured in labor-years

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F. Suppose that aggregate investment is $18,000,000,000, government deficit spending is $2,000,000,000 (i.e, 18 and 2 billion), labor productivity is $50,000 per year worked, the average annual wage is $40,000, and the propensity to consume is 0.75. What will be the equilibrium level of employment, measured in labor-years? Show all steps of your calculation.

Reference no: EM13729442

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Equilibrium level of employment, measured in labor-years : F. Suppose that aggregate investment is $18,000,000,000, government deficit spending is $2,000,000,000 (i.e, 18 and 2 billion), labor productivity is $50,000 per year worked, the average annual wage is $40,000, and the propensity to consume is 0.75. ..

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