posted by josh on .
Consider an economy with the production function L^(1/3)
a) Derive the Labor demand Curve
b) If Labor supply curve is L^s= (w/p), calculate the equilibrium levels of real wage, labor and output.
c) Assume M^s= 45 and k=3 . What is the equation of the aggregate demand curve for this example? What is the price level? What is the wage?