Comments on: Homework http://ecn101.wordpress.com Intermediate Macroeconomic Theory, UC Davis Wed, 12 Sep 2007 02:31:46 +0000 http://wordpress.com/ hourly 1 By: Question on 3-3 http://ecn101.wordpress.com/homework/#comment-2 Question on 3-3 Sun, 12 Aug 2007 16:31:09 +0000 http://ecn101.wordpress.com/homework/#comment-2 (Q)For homework problem #3, when its asking for the rental prices and the real wage, does it mean that we need to indicate if the rental prices or the real wage increases while L increases or do we need to calculate for a specific numerical answer, for instance, the amount increased? Thank you! (A)You are asked for numerical answer. That is, you need to tell how much % the Y, R/P and W/P increases (or decreases). In case of labor, plug in 1.1L instead of L and then take the ratio of the amount you compare. (Q)For homework problem #3, when its asking for the rental prices and the real wage, does it mean that we need to indicate if the rental prices or the real wage increases while L increases or do we need to calculate for a specific numerical answer, for instance, the amount increased? Thank you!

(A)You are asked for numerical answer. That is, you need to tell how much % the Y, R/P and W/P increases (or decreases). In case of labor, plug in 1.1L instead of L and then take the ratio of the amount you compare.

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