The table gives information about the economy of Nautica.

Suppose that the government introduces a minimum wage of$0.80 an hour.

What is the real wagerate, the quantity of laboremployed, potentialGDP, andunemployment? Does the unemployment arise from job search or jobrationing? Is the unemploymentcyclical? Explain.

Table 1

Labor hours (per day) - 0, 10, 20, 30, 40

Real GDP (2009 dollars per year) 0, 100, 180, 240, 280

Table 2

Real wage rate (2009 dollars per hour) 1.00, 0.80, 0.60, 0.40

Quantity of labor demanded 10, 20, 30, 40

Quantity of labor supplied 50, 40, 30, 20

The real wage rate is ____ an hour and the quantity of labor employed is ____ hours a day.

Potential GDP is $____ a year.

Unemployment is____hours a day.

The unemployment arises from _____ (job rationing or job search)