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Business, 27.06.2019 00:20, Jakeandjenn21
The black death: in the middle of the fourteenth century, an epidemic known as the black death killed about a third of europe’s population, about 34 million people. while this was an enormous tragedy, the macroeconomic consequences might surprise you: over the next century, wages are estimated to have been higher than before the black death. a. use the simple cobb-douglas production function to explain why wages might have been higher. b can you attach a number to your explanation? in the model, by how much would wages rise if athird of the population died from the disease. the capital stock remained unchanged (hint: referto the profit maximizing labor condition)
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