Hi may you please assist me with this assignment. I would like to get the solutions to this as im preparing for a test.

|~ Draw | Read aloud +Exit Fullscreen? | CD Q168 Question 1 (44 Marks) Country A is made up of 150 individuals, all forming part of the working-age population. Workers and owners in this labour market split the average product of labour according to a 60:40 ratio (workers getting 60% of the average product of labour). Each worker produces 3 units per time period, there are 30 owners in the labour market, and 80% of the labour force is currently employed. You may assume that owners are the only individuals who are not in the labour force. Use this information to answer the following questions. a) How many individuals are currently in the labour force? [1] b) How many individuals are currently employed in this labour market? [1] c) What proportion of the population is employed? [2] d) What proportion of the population is unemployed? [2] e) Calculate the unemployment rate in this labour market. [2] f) Calculate the labour force participation rate. [2] g) Using the equation - = 1 - Au, calculate and interpret the real wage received by the workers in this labour market. [2] h) Sketch the initial labour market equilibrium using wage-setting and price-setting curves [5] Sketch the initial state of inequality in this market using Lorenz curves. (5] Assume the government in this country imposes legislation forcing the reduction of the work week from 5 days to 4 days with no drop in wages across the economy. Assume this policy has no effect on the average product of labour. Instead, focus on how this policy change will impact on the overall happiness level in the labour market. Graph the impact of this change on the labour market, being sure to explain clearly which curves shift and which do not, while also discussing the effect of this policy change on the real wage and the overall employment situation in the labour market. [6] Assume the government in this country would like to examine the labour market effect of a few possible policies. They hire you to consult based on your knowledge of labour markets. They are considering two options. Option 1 involves the introduction of economy-wide training, which will make all workers more productive (APL goes up by 1 unit) while holding the markup constant. Option 2 involves the introduction of more firm competition in the market so that owners are forced to drop the overall price level in the economy (a reduction in the markup from 0.4 to 0.2 across the market). k) Calculate the new real wage under the two possible options. [4] I) Given your calculations in the previous question, does this suggest each option would lead to the same effect on the labour market? Using wage-setting and price-setting curves, show how these policies lead to a similar outcome. Use one set of axes to show each option. [6] m) Use Lorenz curves to show and explain the key difference(s) between the two policies in terms of inequality in the market. [6]|~ Draw | Read aloud + Exit Fullscreen ?) | CD Question 2 (18 Marks) Rhys' endowment for the current period is R200000, and he expects to receive an additional R300000 in next the period. He can invest his current endowment at an interest rate of 10% and can borrow against his future endowment at an interest rate of 15%. Assume each time period is one year apart. a) What is the most he can consume in the current time period? [2] b) What is the most he can consume in the next time period? [2] c) Graph his feasibility frontier for the set interest rates [2] d) If she would like to smooth her consumption across both periods such that she can consume the exact same amount in both periods, how much should she consume in each period? [4] e) Suppose the government in this economy would like to reduce inflation caused by excess demand. Use your knowledge of monetary policy to explain what the reserve should do to reduce inflation. Name this type of monetary policy required. [4] f) Graph the impact of an increased interest rate for borrowing from 15% to 18%. [4]