Real wage rate (2007

dollars per hour)

Quantity of labour

demanded

(billions of hours

per year)

Quantity of labour

supplied

(billions of hours

per year)

15 70 10

20 60 20

25 50 30

30 40 40

35 30 50

Real GDP

(trillions of 2007

dollars per year)

Quantity of labour

(billions of hours

per year)

3 20

9 30

14 40

18 50

21 60

15) Refer to Table 22.3.1. The tables show the labour market and the aggregate production function

schedule for the country of Pickett. Potential GDP is

A) $40 trillion.

B) $6 trillion.

C) $14 trillion.

D) $25 trillion.

E) $9 trillion.

Answer: C

Diff: 2 Type: MC

Topic: How Potential GDP Grows