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How to calculate involuntary unemployment?
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RichaS
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Jan 15, 2017; 3:08pm
How to calculate involuntary unemployment?
97 posts
I suppose the answer's are a) l=16 and b) is l=9 so I=36+4*9=72.
But how do we calculate the involuntary unemployment?
Is it 16-9=7?
Abhitesh
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Jan 15, 2017; 5:46pm
Re: How to calculate involuntary unemployment?
162 posts
Involuntary unemployment is the L_s - L_d.
The answers are correct.
Asd1995
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Apr 26, 2017; 4:11pm
Re: How to calculate involuntary unemployment?
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by RichaS
Hi,
Could you clarify your solution of the second part?
Solving the firm's optimising condition,
p*24sqrt(l)-4l is to be maximised which gives p=sqrt(l)/3, so purchases=revenue=8l
so that gives us 4l=earninngs=36 plus purchases=36 plus 8l,, which is redundant.
Help me out please?
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