Question

Consider Figure 11-3. Will all people who desire to work be employed if the current wage rate is $\$28$per hour? How many people will be employed and unemployed at this wage rate?

Short answer

Every individual who wants to work can not be employed at the wage rate of $\$28$each hour.

$150$million people will be employed and $20$ million people will be jobless.

Step-by-step solution

introduction

In the figure, balance is achieved at E, where interest for people is equivalent to their stock. The comparing wage pace of $\$26$each hour is the harmony wage rate. $160$ million people are requested and provided in harmony.

explanation

At the point when the compensation rate increases from $\$26$each hour to $\$28$each hour, interest for people tumbles from $160$million to $150$million. The supply of labourers ascends from $160$million to $170$million. In this way, the request misses the mark regarding supply by $20$million. Since the interest for people is $150$million, just $150$million people will track down business. The leftover $20$million people, out of the $170$million ready to work at$\$28$ each hour, will be jobless.