The top table describes an economy's labor market and the bottom table describes its production function. Real wage rate (2012 dollars per hour) Labor hours supplied Labor hours demanded 80 70 60 50 40 30 105 90 75 60 45 30 15 30 45 60 75 90

Table 1 Table 1 shows the labor market schedule and Table 2 shows the production function schedule for the country of Moldovokia. Real wage rate Quantity of labor Quantity of labor demanded supplied What is potential GDP if a decrease in the population changes the quantity of labor supplied by 20 billion hours at each real wage rate? (2012 dollars per hour) 15 (billions of hours per year) 20 60 20 50 30 Potential GDP is $ trillion. 25 40 40 30 30 50 35 20 60 Table 2 Labor Real GDP (trillions of 2012 dollars) 2.0 (billions of hours per year) 20 30 2.7 40 3.2 50 3.5 60 3.6 Enter your answer in the answer box. ? MacBook Air esc 80 000 000 DII DD F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 2$ & * 1 2 3 7 8 delete Q W E Y U { [ A S F G %3D K L D.

(Table: Employment Data) If marginally attached workers are included in the labor force, the number of persons in the labor force is million. Table: Employment Data Full-time employed 20 million Not working but looking for work 2 million Part-time employed 10 million Discouraged workers 33 011 32 1 million 27

Assume an economy has a population of working age of 83 million and unemployment rate is 4%. Further, the average productivity of labour is 80,000 and the average mark-up in the economy (µ) is 5%. The wage-setting curve for this economy is given by real wage = 55,000 + 25, 000X, with X representing the employment rate. The labour market is in equilibrium. (a) Calculate the equilibrium real wage of the economy. (b) Calculate the employment rate of the economy. Calculate the number of employed workers in the economy. (d) s) Calculate the participation rate of the economy.

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The tables set out information about the economy of Athabasca. Calculate the quantity of labor employed, the real wage rate, and potential GDP. The quantity of labor employed is million hours. Table 1 Production Function Labor hours (millions) 5 10 15 20 25 Table 2 Labor Market Real wage rate (2012 dollars per hour) 20 19 18 17 16 Real GDP (millions of 2012 dollars) 100 195 285 370 450 Quantity of labor demanded Quantity of labor supplied (millions of hours per year) 5 25 10 20 15 15 20 25 10 5

Question 2 Part (a) Refer to the table below for a very simple economy producing three goods: education, pizzas and cars. Steel panels are needed for car production, cheese is necessary for making pizzas and projectors are used for educational service. Product Steel panels Education Cars Cheese Pizzas Projectors Quantity 40 400 400 2500 2500 4000 2017 Price $5000 $1000 $10000 $1.50 $9.00 $2000 Quantity 50 450 500 3500 3500 5000 2022 Price $6000 $1100 $12000 $1.50 $12.00 $3000 What is the nominal GDP for the economy in 2022? What was the nominal GDP in 2017? What is the real GDP in 2022 using 2017 prices as base year prices? What is the overall real GDP growth rate between 2022 and 2017? Part (b) Assume for an economy, there are 11.5 million people employed, unemployment rate is 5.2%, labor force participation rate is 64%, number of defence force personnel

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↑ Nominal Average CPI Year Hourly Earnings (1982-1984 100) 2020 $10 188.9 2021 11 195.3 2022 13 201.6 Looking at the table, real average hourly earnings between 2021 and 2022 changed by OA. 1.2%. OB. 4.5%. OC. 9.9%. OD. 14.5%.

Define the following • Unskilled iabour ****** * Skilled labour Semi-skilled labour 2021-08-23 08:58