What are the effects of an increase in the population on potential gdp, the quantity of labor, the real wage rate, and potential gdp per hour of labor? an increase in the population the real wage rate and the equilibrium quantity of labor.

Effects

Potential GDP decrease

the quantity of labor increase

the real wage rate decrease

and potential GDP per hour of labor  decrease

An increase in the population decrease the real wage rate and increase the equilibrium quantity of labor.

Explanation:

Population growth affects many phenomena such as the age structure of a country’s population, international migration, economic inequality, and the size of a country’s work force.

Thinking in the graph of the labor market where combines hour real wage with the quantity of labor, if we increase the population ,  that means the demand of labor will increase so,  the wage will  decrease.

GDP per hour worked is a measure of labor productivity

The equilibrium is  where the quantity demanded of labor is equal to the quantity supplied.

So,  if the if the population increase the equilibrium quantity of labor will increase.

Effects Potential GDP is Potential gross domestic product decrease

the quantity of labor increase

the real wage rate decrease

and potential GDP per hour of labor  decrease

answer(d) encourage cooperation by improving the chances of mutually agreeable transactions;