If the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded

Question

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When the real wage rate is such that the quantity of labor supplied equals the quantity of labor demanded, it indicates a full-employment equilibrium, where all who are willing and able to work at the prevailing wage rates are employed. This situation also implies that actual GDP equals potential GDP, as the economy is utilizing its labor resources efficiently.

If the Real Wage Rate Is Such That the Quantity