Problem 2 In 2013, the demand for labour was W = 600-3L, supply of labour was W = 100 + 10L. In 2013, aggregate production function was Y = 1000 KVL. In 2014, higher productivity increased production function to Y = 1200√K√L, and labour demand changed to W = 700-3L. In 2013 and in 2014, K = (500 + 10*X) Remember, X = 9 answer points grade Output per worker in 2013 (Y/L) = 10 10
Output per worker in 2014 (Y/L) = 10 10