I know this question was already answered on here, but for the Potential GDP por

Question

I know this question was already answered on here, but for the Potential GDP portion of the problem, the question that was already solved said that the Potential GDP is $180, but when I checked it so I could move on to the last part of the question, it said that it was incorrect.

Score: 2 of 6 pts 5of8 (8 complete) Instructor Assignable 8 The table gives informaton about the econormy of Nautica. Suppose that tha govarnment introduces a minimum wage of S0.80 an hour What is the real wage rate, the quantity of labor employed, potential GDP, and unamployment? Does the unemployment arise from job search or job rationing? ls Table 1 Labor hours lper day (2009 dollars per the unemployment cyclical? Explain The raal waga rate isD an hour and tha quantity of lahor amplayed is 20 hours a day Potenial GDPis sayear 10 20 30 100 100 240 Tablke 2 Real wage rate 2009 dolilars Quantity of labor demanded Quantity of labor supplied 1.00 0.80 0.60 0.40 20 30 40 40 30 20

Explanation / Answer

Potential output is 240 at which demand for labour is equal to supply for labour. 180 is actual output rather than potential output

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---