8 Numeric and Graphing Questions
$$\begin{array} { |c | c | c }
\begin{array} { c }
\text { Labor demand } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} & \begin{array} { c }
\text { Real wage rate } \
\text { (2005 dollars) }
\end{array} & \begin{array} { c }
\text { Labor supply } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} \
\hline 0 & 30 & 6 \
\hline 1 & 25 & 5 \
\hline 2 & 20 & 4 \
\hline 3 & 15 & 3 \
\hline 4 & 10 & 2 \
\hline
\end{array}$$
$$\begin{array} { | c | c | }
\hline \begin{array} { c }
\text { Employment } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} & \begin{array} { c }
\text { Real GDP } \
\text { (billions of } \
\text { 2005 dollars) }
\end{array} \
\hline 6 & 95 \
\hline 5 & 90 \
\hline 4 & 80 \
\hline 3 & 60 \
\hline 2 & 30 \
\hline
\end{array}$$
-The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function.
a) What is the equilibrium real wage rate and the level of employment?
b) What is potential GDP?

Question

8 Numeric and Graphing Questions
 $$\begin{array} { |c | c | c } 
\begin{array} { c } 
\text { Labor demand } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} & \begin{array} { c } 
\text { Real wage rate } \
\text { (2005 dollars) }
\end{array} & \begin{array} { c } 
\text { Labor supply } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} \
\hline 0 & 30 & 6 \
\hline 1 & 25 & 5 \
\hline 2 & 20 & 4 \
\hline 3 & 15 & 3 \
\hline 4 & 10 & 2 \
\hline
\end{array}$$ 
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Employment } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (billions of } \
\text { 2005 dollars) }
\end{array} \
\hline 6 & 95 \
\hline 5 & 90 \
\hline 4 & 80 \
\hline 3 & 60 \
\hline 2 & 30 \
\hline
\end{array}$$
-The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function.
a) What is the equilibrium real wage rate and the level of employment?
b) What is potential GDP?

Quizplus · Accepted Answer

The Answer of 8 Numeric and Graphing Questions
 $$\begin{array} { |c | c | c } 
\begin{array} { c } 
\text { Labor demand } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} & \begin{array} { c } 
\text { Real wage rate } \
\text { (2005 dollars) }
\end{array} & \begin{array} { c } 
\text { Labor supply } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} \
\hline 0 & 30 & 6 \
\hline 1 & 25 & 5 \
\hline 2 & 20 & 4 \
\hline 3 & 15 & 3 \
\hline 4 & 10 & 2 \
\hline
\end{array}$$ 
 $$\begin{array} { | c | c | } 
\hline \begin{array} { c } 
\text { Employment } \
\text { (billions of } \
\text { hours per } \
\text { year) }
\end{array} & \begin{array} { c } 
\text { Real GDP } \
\text { (billions of } \
\text { 2005 dollars) }
\end{array} \
\hline 6 & 95 \
\hline 5 & 90 \
\hline 4 & 80 \
\hline 3 & 60 \
\hline 2 & 30 \
\hline
\end{array}$$
-The first table above gives the labor demand and labor supply schedules for a nation.The second table gives its production function.
a) What is the equilibrium real wage rate and the level of employment?
b) What is potential GDP?

8 Numeric and Graphing Questions -The First Table Above Gives the Labor Demand and Labor