Problem
1. Why does real wage rigidity contribute to unemployment? What are its causes?
2. What is the natural rate of unemployment? What has caused the natural rate to change over time?
3. What is cyclical unemployment?
3. Assume the marginal product of labor is MPL = 0.65 × $13/L, where output is measured in trillions and L is the number of workers (in millions).
a) Draw the MPL curve.
b) Find the quantity of workers demanded if the real wage is $50,000 per worker.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.