This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain how the labor market and the production function determine potential GDP. What will be an ... (Read 106 times)

segrsyd

  • Hero Member
  • *****
  • Posts: 530
on: Jun 29, 2018
Explain how the labor market and the production function determine potential GDP.
 
  What will be an ideal response?

Question 2

The infant industry argument is based on the idea of
 
  A) learning-by-doing.
  B) absolute productivity advantage.
  C) global monopoly.
  D) countervailing duties.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

aruss1303

  • Sr. Member
  • ****
  • Posts: 314
Reply #1 on: Jun 29, 2018
Answer to Question 1

The labor market determines the equilibrium quantity of labor. In other words, the amount of employment is determined by supply and demand in the labor market. The production function shows the amount of output, real GDP, that is produced for all different amounts of employment. Intuitively, the production function converts the amount of employment from the labor market into real GDP. If the labor market is in equilibrium, so that the level of employment is equal to full employment, then the amount of real GDP produced, determined from the production function is potential GDP.

Answer to Question 2

A


segrsyd

  • Member
  • Posts: 530
Reply 2 on: Jun 29, 2018
Excellent

flexer1n1

  • Member
  • Posts: 373
Reply 3 on: Yesterday
Wow, this really help

« previous next »
 

Did you know?

According to research, pregnant women tend to eat more if carrying a baby boy. Male fetuses may secrete a chemical that stimulates their mothers to step up her energy intake.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

The immune system needs 9.5 hours of sleep in total darkness to recharge completely.

The structure and function of the GABA-A receptor. The structure and function of the GABA-A receptor.
Experimental evidence of the effect of allelochemicals on plant production. Experimental evidence of the effect of allelochemicals on plant production.
Draw and label a diagram and explain how a factor-dependent transcription (rho-dependent) terminator Draw and label a diagram and explain how a factor-dependent transcription (rho-dependent) terminator
How to use the discriminant to determine the value of k in a quadratic with one real root How to use the discriminant to determine the value of k in a quadratic with one real root
Asymptote of Reciprocal Function Asymptote of Reciprocal Function
The production of a new allopolyploid species The production of a new allopolyploid species
Video: Subunits of DNA And Semi Conservative Replication

For a complete list of videos, visit our video library