need help macroecon

Practice Questions 1) 2) 3) 4) Suppose that the production function had constant returns to labor (a=0), so that the marginal product of labor is given by MPN=A. Derive the demand curve for labor. How does it differ from the one in the text? How would this affect the determination of an equilibrium in the labor market? Suppose we allow for an income tax 1' on labor income. Assume workers pay for the tax out of their earnings. Thus, instead of earning \"7? per hour, they get (I-r) W/P in alter-tax income. Suppose the government lowers the income tax rate. Show graphically how this would affect labor supply and equilibrium in the labor market. Describe how this would shi the aggregate supply curve? Why does the long-run aggregate supply curve not depend on expected prices, while the short-run aggregate supply curve does? Suppose that we decided to follow the labor economics literature and assume that the income and substitution effects cancel out, so that the labor supply decisions of individuals were independent of the real wage. In other words, suppose the labor supply curve is vertical. What would this imply about the slope of the short-um aggregate supply curve? What would it imply about uctuations in output in the short-run