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22 The tables set out information about the economy of Athabasca. Table 1 Production Function Labor hours Real GDP Suppose the labor force participation rate
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The tables set out information about the economy of Athabasca. Table 1 Production Function Labor hours Real GDP Suppose the labor force participation rate of Athabasca ( millions) (millions of dollars) increases. 25 275 50 525 75 750 100 950 When the labor force participation rate of Athabasca 125 1,125 increases, employment O A. either increases or decreases, but we don't Table 2 Labor Market know for sure Real wage Quantity of Quantity of O B. does not change rate labor demanded suppli (dollars per hour) (millions of hours per yea O C. increases 11 25 125 O D. decreases 10 50 100 9 75 75 When the labor force participation rate of Athabasca 8 100 50 increases, potential GDP and the real wage 7 125 25 rate O A. increases; increases O B. decreases; increases O C. decreases; decreases O D. increases; decreasesStep by Step Solution
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