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Consider the Following Model of the Labor Market:
Labor Supply L5=aˉ×w+ˉL ^ { 5 } = \bar { a } \times w + \bar { \ell }

Question 10

Multiple Choice

Consider the following model of the labor market:
Labor supply: L5=aˉ×w+ˉL ^ { 5 } = \bar { a } \times w + \bar { \ell }
Labor demand: Ld=fˉwL ^ { d } = \bar { f } - w

The endogenous variables are:


A) fˉ\bar { f } and   aˉ\bar { a }
B) aˉ\bar { a } and the equilibrium wage, w
C) fˉ\bar { f } and the equilibrium wage, w
D) the equilibrium quantity of labor, L, and wage, w
E) aˉ\bar { a } and the equilibrium quantity of labor, L

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