y= K∂(AN -ßNß) + CLy
(a) Using calculus derive a formula for the aggregate labour
demand (N D). Express aggregate labour demand as a function of the
real wage w (and all other variables and parameters).
(b) The aggregate quantity of labor supplied is NS = 50 + (1 +
s)w, where s is a wage subsidy paid by the government. Assume that
s = 1, A = 100, B = 1/4, K = 1, β = 2: solve for...