Answer:
Effects
Potential GDP decrease
the quantity of labor increase
the real wage rate decrease
and potential GDP per hour of labor decrease
An increase in the population decrease the real wage rate and increase the equilibrium quantity of labor.
Explanation:
Population growth affects many phenomena such as the age structure of a country’s population, international migration, economic inequality, and the size of a country’s work force.
Thinking in the graph of the labor market where combines hour real wage with the quantity of labor, if we increase the population , that means the demand of labor will increase so, the wage will decrease.
GDP per hour worked is a measure of labor productivity
The equilibrium is where the quantity demanded of labor is equal to the quantity supplied.
So, if the if the population increase the equilibrium quantity of labor will increase.
Effects Potential GDP is Potential gross domestic product decrease
the quantity of labor increase
the real wage rate decrease
and potential GDP per hour of labor decrease
