Question 1 continued.

Consider the information in the file named HW9 The Labor Market. Assume that the supply-of-labor numbers in that file pertain to native-born workers. In other words, currently, there are no immigrants in the country.

Assume that labor productivity increases so that each worker can produce 20 T-shirts more than before (add 20 to all the MPL numbers).

Calculate the following:

Equilibrium wage rate = dollars.

Number of Wokers employed = persons.

Labor income (Total dollar amount received by all the workers) = dollars.

Purchasing power of the employed workers (The number of T-shirts these workers can buy with the total income you calculated above) = T-shirts.