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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?
- If you were the policy maker, would you implement a minimum wage? Carefully discuss your own views and reasoning.
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International Development And The Washington Consensus A Pluralist Perspective
Authors: John Marangos
1st Edition
042953485X, 9780429534850
