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a Assume the aggregate production function is given by Y = 2(KL) 2. Write down the profit maximization problem for the firm, that pays wage w to labor and rental rate r to capital. Derive the labor demand schedule. b) In the setting described in b), find the equilibrium value of the wage rate and employ- ment if the capital stock is K = 1 and labor supply is Ls = w = wage rate. c) If the government imposes a minimum wage w = 2, what will happen to employment? Will total wage income go up or down when we raise the minimum wage?a Assume the aggregate production function is given by Y = 2(KL) 2. Write down the profit maximization problem for the firm, that pays wage w to labor and rental rate r to capital. Derive the labor demand schedule. b) In the setting described in b), find the equilibrium value of the wage rate and employ- ment if the capital stock is K = 1 and labor supply is Ls = w = wage rate. c) If the government imposes a minimum wage w = 2, what will happen to employment? Will total wage income go up or down when we raise the minimum wage