Question

Suppose that we were to observe unemployment in the labor market depicted in Figure 28-4. Would this imply that the current wage rate is above or below the $1,000 equilibrium weekly wage rate in the figure? Explain briefly.

Short answer

The current wage rate is above then the $\$1000$ equilibrium weekly wage rate

Step-by-step solution

Given Information

The marginal product of info, say work, is characterized as the additional result that outcomes from adding one unit of the contribution to the current blend of useful elements.

Explanation

The employment demand is expanding at quite a quarterly wage level at$\$1000$.Those very business needs will only be filled by one strong labour quantity with only a terrible worker pay. At the point when the week after week wage rate is over the harmony wage rate, the demand for work is given by $Qd$, while the inventory of work is given by Qs. Although may be used in the illustration,$Qs>Qd$. Accordingly, when week after week the wage rate is over the balance wage rate$\$1000$, there will be joblessness in the work market.