Long-run classical model from Chapter 3. You must provide properly labeled graphs to get full credit 3) A) Suppose there is a permanent increase in the labor force (L). a) What will be the impact on the real wage (W/P) and the real rental price of capital (R/P)

Below the classical model, economic growth is necessarily achieved because of stability in the wage level. For instance, one case of unemployment predominates at a real wage (W / P)1.

Currently, the excessive labor supply would lower the actual wage level before labor supply equals its demand. Eventually, real wage rates would decline to (W / P)F, whereby aggregate labor demand is perfectly matches by aggregate labor supply.

Only the supply side of the production market for products defines the quantity of output & jobs in the classical model.

As the classical method is supply-determined, it states that equiproportional increases (or declines) will not alter the supply of labor in both the rate of money wage and the price level.

c.

step-by-step explanation:

because first you have to add the 4x, 9x, and the 7x together and you get 20x and then you add the last numbers up and you get 5and then you put the subtraction sign in there and that's how you get the answer.