F412:19 31908_ .. . 88% owl.uwo.ca Page 13 of 18 QUESTION 11 (10 marks) Suppose that, initially, the economy of Essos is in equilibrium with no unemployment: Ls = 1,000,000 + 200W and LD = 19,000,000 - 300W, where W= the annual wages and L = the number of workers. Then, structural unemployment arises because the demand for labor falls in Essos, but wages there are inflexible downward and no one moves out of state. If labor demand falls to LD = 18,000,000 - 300 W, how many workers will be unemployed in Essos? What will be its unemployment rate? Page 14 of 18