(a) Using the one-period model, show what effects additional education has in the present on consumption, leisure, employment, aggregate output, and the real wage.
(b) Similarly, show the effects the additional education that people acquire today will have in the future on consumption, leisure, employment, aggregate output, and the real wage.
(c) What does your analysis in parts (a) and (b) have to say about the trade offs society makes between the present and the future in investing in education?
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