Question

Use the information in the schedules above to draw this​ economy's production function. Label it. Draw a point to show equilibrium employment and potential GDP. At the​ full-employment quantity of​ labor, the real wage rate is ​____$ an hour.

Answer 1

Answer:

The information in the schedules can be found on this link:

https://www.google.ch/search?q=%22production+function+and+demand+for+labor+schedules%22&hl=en&tbm=isch&source=iu&ictx=1&fir=Q9NxFXsgg-TLAM%253A%252C3Ii2VLpJgT9QqM%252C_&vet=1&usg=AI4_-kT1RugPPWJXULztRybSitHwqJnmQg&sa=X&ved=2ahUKEwjV-vf__eXmAhUDvVkKHYsSDh8Q9QEwCHoECAoQDA#imgrc=_&vet=1

There is a federal agency in the legislative branch of the US Government that makes economic information available, that agency is "The Congressional Budget Office", which inspects and breaks down the distribution of income in the country and how it changes over time.

The GDP is the value of goods and services produced in a year; the production function is the relationship between GDP and labor, where labor supply is wage rate and labor hours at such wage rates and the combination of wage rates and labour hours determines the labor demand. With the info provided in the example, the real wage rate would be $2 an hour.