Table 22.3.1

Real wage rate (2007 dollars per hour)	Quantity of labour demanded (billions of hours per year)	Quantity of labour supplied (billions of hours per year)
15	70	10
20	60	20
25	50	30
30	40	40
35	30	50

Real GDP (trillions of 2007 dollars per year)	Quantity of labour (billions of hours per year)
3	20
9	30
14	40
18	50
21	60

7)Refer to Table 22.3.1. above. The tables show the labour market and the aggregate production function schedules for the country of Pickett.

A) Plot (make a graph) both the aggregate labour market and aggregate production function. Using these graphs, show the equilibrium real wage and quantity of labour.

B) At the equilibrium in the labour market, what would be the level of real GDP associated with that equilibrium? Explain why the equilibrium in the labour market can be used to find the level of real GDP.

C) If the quantity of labour supplied increases by 20 billion hours at every real wage level, what would be the new level of real GDP and real wage?