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For the Economy of Lower Volta,the MPN Is Given by MPN

Question 101

Multiple Choice

For the economy of Lower Volta,the MPN is given by MPN = 400 - 0.2N where N is aggregate employment.The aggregate quantity of labour supplied is 500 + 10(1 - t) w where t is the income tax rate and w is the real wage.Assume that the income tax rate is 50%.What is the before-tax real wage?


A) 150
B) 200
C) 250
D) 300

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