-The Tables Above Show the Labor Market and the Production

question 133

Multiple Choice

$$\begin{array} { | l | c | c | } \hline \begin{array} { c } \text { Real wage rate } \\\text { (2005 dollars } \\\text { per hour) }\end{array} & \begin{array} { c } \text { Quantity of labor } \\\text { demanded (billions } \\\text { of hours peryear) }\end{array} & \begin{array} { c } \text { Quantity of labor } \\\text { supplied (billions } \\\text { of hours per year) }\end{array} \\\hline 15 & 70 & 10 \\\hline 20 & 60 & 20 \\\hline 25 & 50 & 30 \\\hline 30 & 40 & 40 \\\hline 35 & 30 & 50 \\\hline\end{array}$$
$\begin{array}{|c|c|}\hline\text { Real GDF } & \text { Quantity of labor } \\\text { (trillions of 2005 } & \text { (billions of hours } \\\text { dollars per year) } & \text { per year) } \\\hline 3 & 20 \\\hline 9 & 30 \\\hline 14 & 40 \\\hline 18 & 50 \\\hline 21 & 60 \\\hline\end{array}$
-The tables above show the labor market and the production function schedule for the country of Pickett. An increase in population changes the labor supply by 20 billion hours at each real wage rate. Potential GDP______________ .

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