Consider the following model of the labor market:
Labor supply:

L ^ { 5 } = \bar { a } \times w + \bar { \ell }

Labor demand:

L ^ { d } = \bar { f } - w

The values of the equilibrium quantity of labor, L, and wage, w, are:
A)

L ^ { * } = ( \bar { a } \bar { f } + \bar { \ell } ) / ( \bar { \ell } + \bar { a } ) ; w ^ { * } = ( \bar { f } - \bar { \ell } ) / ( \bar { \ell } + \bar { a } )

L ^ { * } = ( \bar { a } \bar { f } + \bar { \ell } ) / ( \bar { \ell } + \bar { a } ) ; w ^ { * } = ( \bar { f } - \bar { \ell } ) / ( \bar { \ell } - \bar { a } )

L ^ { * } = ( \bar { a } \bar { f } + \bar { \ell } ) / ( \bar { \ell } + \bar { a } ) ; w ^ { * } = ( \bar { f } + \bar { \ell } ) / ( \bar { \ell } + \bar { a } )

L ^ { * } = ( \bar { a } \bar { f } + \bar { \ell } ) / ( \bar { \ell } - \bar { a } ) ; w ^ { * } = ( \bar { f } - \bar { \ell } ) / ( \bar { \ell } - \bar { a } )

L ^ { * } = \frac { \bar { a } \bar { f } + \bar { \ell } } { \bar { \ell } + \bar { a } } ; w ^ { * } = \frac { \bar { f } - \bar { \ell } } { \bar { \ell } - \bar { a } }

Which of the Following Does Macroeconomics Endeavor to Answer

Multiple Choice