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Draw a labour market diagram, and explain why one of the curves is upward sloping and one downward sloping. Assume that for some reason the
- Draw a labour market diagram, and explain why one of the curves is upward sloping and one downward sloping.
- Assume that for some reason the wage in the market is below the equilibrium level. Carefully describe the mechanism through which the wage will gradually increase to the equilibrium level.
- Suppose the government introduces a minimum wage that is above the equilibrium level. Show it in a diagram and explain the effect on unemployment. Can you think of some (subsequent) effects that are not captured in the diagram?
- Ifyouwerethepolicymaker,wouldyouimplementaminimumwage?Carefullydiscussyourown views and reasoning.
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Managers And The Legal Environment
Authors: E. Bagley
9th Edition
1337555177, 978-1337555173
