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Table 1 shows the labor market schedule and Table 2 shows the production function schedule for the country of Moldovokia. What is potential GDP if
Table 1 shows the labor market schedule and Table 2 shows the production function schedule for the country of Moldovokia. What is potential GDP if a decrease in the population changes the quantity of labor supplied by 40 billion hours at each real wage rate? Potential GDP is $ ----trillion. Table 1 Real wage rate (2012 dollars per hour) Quantity of labor demanded Quantity of labor supplied (billions of hours per year) 15 60 20 20 50 30 25 40 40 30 30 50 35 20 60 Table 2 Labor Real GDP (billions of hours per year) (trillions of 2012 dollars) 20 2.0 30 2.7 40 3.2 50 3.5 60 3.6
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