Read Eye on Potential GDP on p. 626 and then use the following information to work Problems. In South Korea, real GDP per hour of labor is $22, the real wage rate is $15 per hour, and people work an average of 46 hours per week.

Draw a graph of the demand for and supply of labor in South Korea and the United States. Mark a point at the equilibrium quantity of labor per person per week and the real wage rate in each economy. Explain the difference in the two labor markets.