Question: 4. [22 points] The labor market and the supply side of a macroeconomy in 2019 are described by the following equations: Production Function Y

4. [22 points] The labor market and the supply side of a macroeconomy in 2019 are described by the following equations: Production Function Y = aN, Price Markup P Wage Adjustment W = W _1 1 + where Y is output, N is employment, P is price, W is current nominal wage, N* denotes the full-employment level of employment, and a, z, and E are all positive parameters. We also have the following information: V -500, a=4, z=o.6, 8=0.8, and P=IO in2018. (a) [10 points] Derive the AS curve for 2019. Show your work.

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