Question

Suppose that the economy of Witland in the figure below is at full-employment equilibrium, and the present nominal wage rate is $25 per hour. Round your answers to two decimal places.

a. What is the nominal wage rate in Witland at full-employment equilibrium?

$25.00
b. Which round-off rule is applied in this scenario?
Rounding to two decimal places

Answer 1

The nominal wage rate in Witland at full-employment equilibrium is $25.00 per hour, using the rounding rule to two decimal places.

Step-by-step explanation:

In the given scenario, the nominal wage rate in Witland at full-employment equilibrium is $25.00 per hour. This means that, at the full employment level, workers in Witland are earning $25.00 per hour.

The round-off rule applied in this scenario is rounding to two decimal places. This indicates that the wage rate is rounded to two decimal places, such as $25.00.