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a. When unemployment exists in the supply and demand labor market model, there is an adjustment that brings the model back into equilibriumback to full
a. When unemployment exists in the supply and demand labor market model, there is an adjustment that brings the model back into equilibriumback to full employment.Orthodox economists cite two mechanisms that cause the adjustment.Explain each of these.
b. How would removing from the supply and demand labor market model, the assumption that laborers learn no skills on the job, affect how firms are supposed to act when unemployment exists?Explain in detail.
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