High-powered money minus currency in circulation equals

The following table shows the hours of labor supplied by six workers at different wage rates:

Wage Rate (per hour) Amanda (hours worked per day) Wendy (hours worked per day) Shaun (hours worked per day) Kevin (hours worked per day) Leo (hours worked per day) Ryan (hours worked per day) $12 4 3 2 4 3 5 $18 6 7 4 6 7 8 $24 8 9 9 9 10 11 $30 9 10 11 11 12 13 $36 10 11 12 12 13 14 a) If the market for labor consists of only these six workers, calculate the market supply of labor at the different wage rates. b) If the market demand for labor is 56 hours per day, what is the equilibrium wage rate? c) If the market demand for labor is 38 hours per day, what is the equilibrium wage rate?

Excess capacity arises when firms cannot sell all of their output at the current market price

a. True b. False