BZ. Unemployment is one of the major macroeconomic issues that concern policy makers. Some economists have argued the main reason for a rise in unemployment during the great recession 2008/09 is a drop in labour demand. a) Show the effects of a drop in labour demand curve using the labour supply and labour demand curves in the competitive equilibrium with perfect information. Can it predict a rise in unemployment? b) Suppose now there is imperfect information, e.g. firms cannot perfectly observe workers' effort. Explain how your answers to part (a) are changed. c) Another reason why a drop in labour demand can imply a higher unemployment rate is the minimum wage law. Explain how it works using labour supply and labour demand curves. Can this be a main cause of the rise in aggregate unemployment during the great recession for the United States