Question: In the previous problem, what money wage will workers bargain for in the next round of negotiations (i.e., next year), assuming there is no change

In the previous problem, what money wage will workers bargain for in the next round of negotiations (i.e., next year), assuming there is no change in the level of GDP?

This problem make use of the following data for a hypothetical economy. The mark-up is .25, the wage curve is W/P = 1-2.5u, and the labor force is 100 workers. Recall that the production function is Y = N and P = P-1-

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