What is the quantity of real GDP produced if the real wage rate is at the full-employment equilibrium level? If the real wage rate is at the full-employment equilibrium level, real GDP is A. equal to potential GDP, which is efficient but is not the most that can be produced B. equal to potential GDP, which is the most that can be produced C. at its highest attainable and efficient level O D. at or below potential GDP depending on the level of employment

What is the quantity of real GDP produced if the real wage rate is at the full-employment equilibrium level? If the real wage rate is at the full-employment equilibrium level, real GDP is A. equal to potential GDP, which is efficient but is not the most that can be produced B. equal to potential GDP, which is the most that can be produced C. at its highest attainable and efficient level O D. at or below potential GDP depending on the level of employment

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter24: The Aggregate Demand/aggregate Supply Model

Section: Chapter Questions

Problem 61P: Table 24.4 describes Santhers economy. Plot the AD/AS curves and identify the equilibrium. Would you...

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What is the quantity of real GDP produced if the real wage rate is at the full-employment equilibrium level? If the real wage rate is at the full-employment equilibrium level, real GDP is _______. A. at its highest attainable and efficient level B. equal to potential GDP, which is the most that can be produced C. at or below potential GDP depending on the level of employment D. equal to potential GDP, which is efficient but is not the most that can be produced
Give typing answer with explanation and conclusion Suppose the real GDP of an economy is $500 billion dollars and its unemployment rate is 6%. If the natural rate of unemployment is estimated at 4%, what is the value of the country’s potential GDP (LAS) in billions of dollars? Value of the country’s potential GDP (LAS) is $ billion.
Suppose that an economy’s production function is Cobb–Douglas with parameter = 0.3 a. What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage ?
economic Suppose that an economy’s production function is Cobb–Douglas with parameter a=0.3. a. What fractions of income do capital and labor receive? b. Suppose that immigration increases the labor force by 10 percent.What happens to total output (in percent)? The rental price of capital? The real wage? c. Suppose that a gift of capital from abroad raises the capital stock by 10 percent.What happens to total output (in percent)? The rental price of capital? The real wage? d. Suppose that a technological advance raises the value of the parameter A by 10 percent. What happens to total output (in percent)? The rental price of capital? The real wage?
Consider an economy that experiences an outflow of working age people and a decline in aggregatelabour supply as a result. Suppose the aggregate labour demand curve is not affected by this change.(a) Explain, with the aid of the labour-market-equilibrium diagram, how this will affect the equilibriumreal wage and the full-employment level of employment. (b) Explain, with the aid of three separate IS-LM-FE diagrams, how this will affect real output, realinterest rate and the general price level in three steps:(i) before the general price level adjusts;(ii) when the general price level is adjusting;(iii) after the price adjustment process is completed.Is the general price level increasing or decreasing during the price adjustment process? Explain theintuition of your answer with reference to the AD-AS framework.
Consider an economy with 500 people in the labor force. At the beginning of every month, 5 people losetheir jobs and remain unemployed for exactly one month; one month later, they find new jobs andbecome employed. In addition, on January 1 of each year, 20 people lose their jobs and remainunemployed for six months before finding new jobs. Finally, on July 1 of each year, 20 people lose theirjobs and remain unemployed for 6 months before finding new jobs.1. What is the unemployment rate in this economy in a typical month?2. What fraction of unemployment spells lasts for one month? What fraction lasts for six months?3. What is the average duration of completed spell of unemployment?4. On a particular date, what fraction of the unemployed are suffering a long spell (six months) ofunemployment? plz solve part 4 ? Thanks.
2.7 Diminishing Returns? An economy increased employment first from 10,000 to 20,000 and then from 20,000 to 30,000. The corresponding increases in output were 15,000 and 12,000, respectively. Nothing else changed during this period. Did this economy exhibit diminishing returns?
asap Suppose the economy's production function is Y = AKO.3NO.7. If K=2000, N = 100, and A = 1, then Y=246. If K and N both rise by 20%, and A is unchanged, by how much does Y increase?
The CPI is more commonly used as a gauge of inflation than the GDP deflator is becaust the O a. GDP deflator cannot be used to gauge inflation. O b. CPI is easier to measure. O c. CPI better reflects the goods and services bought by consumers. O d. CPI includes more goods and services that the GDP deflator does. Note:- Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism. Answer completely and accurate answer. Rest assured, you will receive an upvote if the answer is accurate.
Suppose a country has a production function Y=2K0.5L0.5, where K is the amount of capital and L is the amount of labor. The economy begins with 400 units of capital and 625 units of labor. Find numerical answers to the following. Be sure to show your work. What is the real wage and the real rental price of capital? (Hint: Assume the firms are maximizing profit.) Suppose there is a natural disaster and half of the capital is destroyed. What is the new level of output? What is the new real wage and real rental price of capital? How much output does the economy produce? Please answer all part I will rate
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.
Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $120 million to $240 million between one year and the next. a. Assuming that the price of gold increased by 100 percent over the same period, by what percentage did Glitter Gulch’s real output change? _______ percent b. If the price of gold had not changed, what would have been the change in value of Glitter Gulch’s real output? $________ million