Figure 7.1

-Refer to Figure 7.1. In equilibrium, the real wage is ________ and the amount of labor employed is ________.

Question

Figure 7.1
 
-Refer to Figure 7.1. In equilibrium, the real wage is ________ and the amount of labor employed is ________.

Quizplus · Accepted Answer

In equilibrium, the real wage is Y and the amount of labor employed is B. This is because the real wage is the wage rate divided by the price level, and the price level is constant in this case. The amount of labor employed is the quantity of labor that is demanded by firms at the given real wage.

Figure 7.1 -Refer to Figure 7.1. in Equilibrium, the Real Wage Is