1. Business
  2. Economics
  3. for the economy of lower volta the mpn is given...

Question: for the economy of lower volta the mpn is given...

Question details

For the economy of Lower Volta, the MPN is given by MPN = 400 - 0.2N where N is aggregate employment. The aggregate quantity of labour supplied is 500 + 10(1 - t)w where t is the income tax rate and w is the real wage. Assume that the income tax rate is 50%. What is the before-tax real wage?

please provide detail explanation.

Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution