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Suppose that Congress votes to increase the retirement age to 72 years. Discuss intuitively how the...

Suppose that Congress votes to increase the retirement age to 72 years.

Discuss intuitively how the rise in the retirement age affects the production function, the labor market, the equilibrium real wage and labor, and the level of output.

And show the impact that this has on the labor market (i.e. on equilibrium wage and labor), and on the full-employment level of output (i.e. full potential level of output). SHOW using the appropriate diagrams.

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