Real labor income is given by ________.
A)MPL × L
B)labor share of income × labor productivity × labor
C)labor share of income × output
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

Real labor income can be represented in multiple ways, including the marginal product of labor (MPL) times the amount of labor (L), the labor share of income times labor productivity times labor, and the labor share of income times output. Each of these formulas captures different aspects of how labor contributes to and benefits from the production process.

Real Labor Income Is Given by ________