What is referred to as the labor supply in macroeconomics?

The concept of labor supply in macroeconomics specifically refers to the number of workers who are willing and able to work at various real wage levels. This measure captures the availability of labor in relation to the wage that employers are willing to pay. When wages increase, more individuals may choose to enter the workforce, while others may be less inclined to work if the wages are too low. Therefore, labor supply reflects the responsiveness of individuals to changes in compensation, indicating how many people are prepared to work at different wages.

The other options focus on different aspects of the labor market. For instance, simply counting the total number of jobs available does not account for the willingness of potential workers to accept those jobs. Measuring the average wage level pertains to the compensation aspect and does not relate to the supply of labor itself. Finally, the total labor hours worked expresses the extent of labor input already realized, which is distinct from the availability of labor determined by the willingness to work at given wage rates. Understanding these distinctions helps clarify why the labor supply specifically addresses the number of workers ready to work given wage conditions.