How would each of the following events affect the level of employment and the real wage

rate? Show your answers using a diagram of the labor market.

a. A bird flu epidemic causes many people to flee the country, but does not affect labor

demand significantly because almost all the goods produced within the country are

exported.

b. The government announces a tax increase on workers' wages to take effect in the

future.

c. A temporary adverse oil-price shock reduces productivity in the economy.

d. The stock market rises sharply.

e. A nuclear mishap contaminates all auto plants in the Detroit area, destroying their

capital.