If the labor force participation increases, explain how employment, the real wage rate, and potential GDP change.

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If the labor force participation increases, explain how employment, the real wage rate, and potential GDP change.


Use the information set out in the tables above about the economy of Athabasca to work this Problem.

Production function Labor hours (millions) Labor market Real GDP (millions of 2009 dollars) Real Quantity of Quantity of

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Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

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