c. The onset of COVID-19 has seen aggregate demand in Bolivia decrease dramatically. As a result, unemployment in the country has increased. Draw a model of the labour market. Assume that before the onset of COVID-19 the labour market in Bolivia was in equilibrium. On your model show what effect the increase in unemployment in the country would have on the real wage in the short term before any adjustments take place. Label both axes, curves, and important points on your model. (5 marks)

Belize Bolivia Population 383 11350 Population of working age 261 7844 Labour force 177 5820 Out of labour force (inactive) 84 2024 Employed 164 5614 Unemployed 14 206