suppose the firm%26#039;s mark-up over cost is 5% and the wage-setting equation i w=p(1-u), where u is the unemployment rate.
What is the real wage as determined by the price setting equation?auto financing
We need some more information. We need to know the unemployment rate -- %26quot;u%26quot; in the above. Alternaitvely we need to know more about the marginal product of labor.
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