-In the figure above, according to the classical model of economic growth, in the long run the real wage rate equals ________ and the quantity of labor is ________ billions of hours per year.

Question

Quizplus · Accepted Answer

In the long run, according to the classical model of economic growth, the real wage rate equals the marginal product of labor, which is $25. The quantity of labor is 300 billion hours per year, which is the point where the marginal product of labor equals the real wage rate.

-In the Figure Above, According to the Classical Model of Economic