Solved

When Taxes Are Included in the Stylized DSGE Model, with Cobb-Douglas

Question 84

Multiple Choice

When taxes are included in the stylized DSGE model, with Cobb-Douglas production, labor demand is given by:


A) w=ˉ(1τ) wcw = \bar { \ell } \cdot \frac { ( 1 - \tau ) w } { c }
B) ΔL=sˉf(K,L) nˉL\Delta L = \bar { s } f ( K , L ) - \bar { n } L
C) w=πe+vˉY~+aˉw = \pi ^ { e } + \bar { v } \tilde { Y } + \overline { \bar { a } }
D) w=mˉ(ππˉ) w = \bar { m } ( \pi - \bar { \pi } )
E) w=(1τ) 2/3AˉK1/3L1/3w = ( 1 - \tau ) \cdot 2 / 3 \cdot \frac { \bar { A } K ^ { 1 / 3 } } { L ^ { 1 / 3 } }

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions