Table 1 Production Function and Demand for Labor Schedules Real GDP (billions of 2012 dollars) 165- Quantity of labor demanded (billions of hours per year) 4 150- Real GDP (billions of 2012 dollars) Real wage rate (2012 dollars per hour) 105 150 135- 75 45 15 120- 105- Table 2 Supply of Labor Schedule Quantity of labor supplied (billions of hours per year) Real wage rate (2012 dollars per hour) 2 4 90- 15 45 75 75- 60- 45- Use the information in the schedules above to draw this economy's production function. Label it. Draw a point to show equilibrium employment and potential GDP. 30- 15- At the full-employment quantity of labor, what is the real wage rate? 0- The real wage rate is $ an hour. Labor (billions of hours per year)

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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Table 1 Production Function and Demand for Labor Schedules
Real GDP (billions of 2012 dollars)
165-
Quantity of labor demanded
(billions of hours per year)
4
150-
Real GDP
105
150
(billions of 2012 dollars)
135-
Real wage rate
(2012 dollars per hour)
75
45
15
120-
105-
Table 2 Supply of Labor Schedule
Quantity of labor supplied
(billions of hours per year)
Real wage rate
(2012 dollars per hour)
4
90-
15
45
75
75-
60-
45-
Use the information in the schedules above to draw this economy's production function. Label it.
Draw a point to show equilibrium employment and potential GDP.
30-
15-
At the full-employment quantity of labor, what is the real wage rate?
0-
The real wage rate is $ an hour.
1
2
3
4
Labor (billions of hours per year)
>>> Draw only the objects specified in the question.
Transcribed Image Text:Table 1 Production Function and Demand for Labor Schedules Real GDP (billions of 2012 dollars) 165- Quantity of labor demanded (billions of hours per year) 4 150- Real GDP 105 150 (billions of 2012 dollars) 135- Real wage rate (2012 dollars per hour) 75 45 15 120- 105- Table 2 Supply of Labor Schedule Quantity of labor supplied (billions of hours per year) Real wage rate (2012 dollars per hour) 4 90- 15 45 75 75- 60- 45- Use the information in the schedules above to draw this economy's production function. Label it. Draw a point to show equilibrium employment and potential GDP. 30- 15- At the full-employment quantity of labor, what is the real wage rate? 0- The real wage rate is $ an hour. 1 2 3 4 Labor (billions of hours per year) >>> Draw only the objects specified in the question.
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