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hello. I'm trying to work through some past papers in preparation for my exam, may you please explain how to attempt this? QUESTION 1 (10
hello. I'm trying to work through some past papers in preparation for my exam, may you please explain how to attempt this?
QUESTION 1 (10 MARKS) The figure below shows our model of the labour market. : Labour supply ' ----------------------------------------------------------------------------- Average product of labour Price-setting curve Real wage Equilibrium unemployment Demanddeficient or cyclical E unemployment, at B Wage-setting rurve T Total involuntary ' i unemployment, at B 0 'r 1 i l Employment, N A. Explain Why point B is not a point of equilibrium in the labour market. (3 marks) B. \"The adjustment from point B to point X will be automatic.\" Discuss this statement. (3 marks) C. How could a government help the labour market move from point B to point X? Use a model to help illustrate your answer. (4 marks)Step by Step Solution
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