Submi Quiz Chapter 24 Quiz This Quiz 10 pts p This Question

Submi Quiz: Chapter 24 Quiz This Quiz: 10 pts p This Question: 1 pt 4 of 10 (2 complete)Y Real wage rate (dollars per hour) The graph describes the labor market on Sandy Island In addition, not shown in the graph, a survey tells us that when Sandy Island is at full employment, people spend 2,000 hours a day in job search. LS What is the full-employment equilibrium real wage rate and quantity of labor employed? What is the natural unemployment rate? The full-employment equilibrium real wage rate is San hour The full-employment equilbrium quantity of labor employed is hours per day >Remember that the quantity given on the -axis is in thousands of hours percent The natural unemployment rate is >x Answer to 1 decimal place LD 9 10 Labor (thousands of hours per day) Enter your answer in each of the answer boxes. here to search DOLL

Solution

Soln.

A. The full employment equilibrium real wage rate is $5 per hour as it is the intersection point of labour supply and Labour demanded at y-axis

B. Where as the full employment equilibrium quantity of labour employed is 6,000 labour hours per day,

C. the natural unemployment rate is 40% as out of 10,000 labor hour per day only 6,000 labour hours per day unemployed which results in 40% unemployment rate.