Refer to Table 22.3.1. above. The tables show the labour market and the aggregate production function schedules for the country of Pickett. a) Plot (create a graph) of both the aggregate labour market and aggregate production function. Using these graphs, what is theequilibrium real wage and quantity of labour? What is the level of real GDP? b) At the equilibrium in the labour market, what is the amount of labour productivity associated with that equilibrium? (Show your calculations) c) If the quantity of labour supplied increases by 20 billion hours at every real wage level, what would be the new level of labour productivity? (Show your calculations) d) If only the quantity of labour supplied
5) Refer to Table 22.3.1. above. The tables show the labour market and the aggregate production function schedules for the country of Pickett.
a) Plot (create a graph) of both the aggregate labour market and aggregate production function. Using these graphs, what is theequilibrium real wage and quantity of labour? What is the level of real GDP?
b) At the equilibrium in the labour market, what is the amount of labour productivity associated with that equilibrium? (Show your calculations)
c) If the quantity of labour supplied increases by 20 billion hours at every real wage level, what would be the new level of labour productivity? (Show your calculations)
d) If only the quantity of labour supplied is increasing over time, what is the impact on the production function and the level growth rate of real GDP per hour over time? Fully explain your answer.
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