Table 1 Production Function and Demand for Labor SchedulesQuantity of labor demanded (billions of hours per year)024Real GDP(billions of 2009 dollars)00105105150150Real wage rate(2009 dollars per hour)757545451515 Table 2 Supply of Labor ScheduleQuantity of labor supplied(billions of hours per year)024Real wage rate(2009 dollars per hour)151545457575 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. At the full-employment quantity of labor, the real wage rate is $nothingan hour.

We are given the schedule for production function and labor demand and supply as follows:

Answered: Table 1 Production Function and Demand…

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter11: Resource Market

Section: Chapter Questions

Problem 2.4P

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Table 1 Production Function and Demand for Labor Schedules

Quantity of labor demanded (billions of hours per year)	0	2	4
Real GDP (billions of 2009 dollars)	00	105105	150150
Real wage rate (2009 dollars per hour)	7575	4545	1515

Table 2 Supply of Labor Schedule

Quantity of labor supplied (billions of hours per year)	0	2	4
Real wage rate (2009 dollars per hour)	1515	4545	7575

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.

At the full-employment quantity of labor, the real wage rate is

$nothing

an hour.

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