In this graph, the market-clearing conditions aren't enforced. Play around with the real wage and see how there is only one wage at which the Producer's and Consumer's Decisions align.
Exogenous Parameters:
\(K\):
\(z\):
\(\alpha\):
\(h\):
\(G\):
\(w\):
Endogenous Parameters:
\(N_d\):
\(N_s\):
\(Y\):
\(\pi\):
\(C\):
\(l\):
\(U\):
Details
The firm solves
\[\max_{N_s}\left[ zK^\alpha N_d^{1-\alpha} - wN_s\right]\]
The consumer solves
\[\max_{C,l}\;\left[\ln C + \ln l\right]\]
subject to the constraints:
\begin{gather}
c\geq 0, \quad \quad h \geq l \geq 0 \tag{NonNeg}\\
c \leq w\cdot(h-l) + \pi - T \tag{Budget}\\
\end{gather}