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(a) How does a firm decide the number of employees to hire? Explain with the aid of a diagram. (b) Explain why there will always
(a) How does a firm decide the number of employees to hire? Explain with the aid of a diagram. (b) Explain why there will always be some unemployment when the labour market is in equilibrium. (c) If an economy has low aggregate demand with high unemployment, explain how the economy could automatically adjust back to equilibrium? Would this occur in reality? Justify your answer.
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