Wage rate Unemployment and Inflation Work It Out: Question 1 of 4 There is only
ID: 1135769 • Letter: W
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Wage rate Unemployment and Inflation Work It Out: Question 1 of 4 There is only one labor market in Profunctia. All workers have the same skills, and all firms hire workers with these skills. Use the accompanying diagram, which shows the supply of and demand for labor, to answer the following questions. Round answers to two places after the decimal when applicable 16- 14- 12- 10- What is the equilibrium wage rate in Profunctia? scroll Equilibrium wage: S 10 0 10 20 30 40 5 80 70 80 50 100 Quantity of labor (thousands)Explanation / Answer
Equilibrium occurs where demand meets supply. This happens where wage rate is $10 per hour and total labor employed is 50 thousand.
Level employment = 50 thousand.
Labor force = (employed + unemployed) = 50 thousand.
Unemployment rate = 0% because everyone at the market wage is getting a job
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