The table gives information about the economy of Nautica. Suppose that the government introduces a minimum wage of $0.80 an hour. Table 1 Labor hours Real GDP What is the real wage rate, the quantity of labor employed, potential GDP, and unemployment? (per day) (2012 dollars per year) Does the unemployment arise from job search or job rationing? Is the unemployment cyclical? 10 100 20 180 30 240 The real wage rate is an hour and the quantity of labor employed is hours a day. 40 280 Table 2 Real Quantity of labor demanded labor supplied Quantity of wage rate (2012 dollars per hour) hours per day 10 50 1.00 0.80 20 40 30 30 0.60 0.40 40 20

The table gives information about the economy of Nautica. Suppose that the government introduces a minimum wage of $0.80 an hour. Table 1 Labor hours Real GDP What is the real wage rate, the quantity of labor employed, potential GDP, and unemployment? (per day) (2012 dollars per year) Does the unemployment arise from job search or job rationing? Is the unemployment cyclical? 10 100 20 180 30 240 The real wage rate is an hour and the quantity of labor employed is hours a day. 40 280 Table 2 Real Quantity of labor demanded labor supplied Quantity of wage rate (2012 dollars per hour) hours per day 10 50 1.00 0.80 20 40 30 30 0.60 0.40 40 20

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 11RQ: If you an? out of school but working part time, are you considered employed or unemployed in U.S....

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If you an? out of school but working part time, are you considered employed or unemployed in U.S. labor statistics? If you are a full time student and working 12 hours a week at the college cafeteria are you considered employed or not in the labor force? If you are a senior citizen who is collecting social security and a pension and working as a greater at Wal-Mart are you considered employed or not in the labor force?
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