Question: Suppose that all workers in the economy are currently working 40 hours a week. a. If all employers cut worker hours so that each employee

Suppose that all workers in the economy are currently working 40 hours a week.
a. If all employers cut worker hours so that each employee is working 20 hours a week, what would happen to the unemployment rate?
b. What would happen to real GDP?
c. The unemployment rate is sometimes used as a measure of the slack in the economy or how far the economy is below potential GDP. How do parts a. and b. of this question suggest that this might be misleading?

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