Trace through how each of the steps in the analysis has to, Econometrics

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Trace through how each of the steps in the analysis has to

In the text, we assumed that the labor supply did not depend on the real wage. Assume that at higher real wages, more individuals wish to work. Trace through how each of the steps in the analysis has to be changed. Show the equilibrium in the labor market. What happens to real wages, employment, GDP, and saving if the labor supply function shifts to the right?

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Econometrics: Trace through how each of the steps in the analysis has to

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Econometrics: Trace through how each of the steps in the analysis has to

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