2. [5 points] Analysis: Suppose that congress votes on major deregulation of key US industries. [i.e. there is fall in regulations]. a. Discuss intuitivel how the decrease in regulations affects production and Labor demand, providing (intuition). Note: simply stating the impact(s) without providing economic reasoning will not yield full points; it will be considered incomplete [partial credit will be given]. Continue with a). Use a diagram(s) to illustrate the impact of a @1111! regulations (LC. deregulation) on production and output 8.: on the labor market (and hence the equilibrium real wage and the equilibrium {Hill-employment). Label all axes and all curves using notation used in class and the textbook! [for example use N for Labor and Y for output]