In 2014, the French government launched a bid to revitalise its economy by promising a E30-billion payroll tax cut for French companies. France has very high taxes paid by employers on the wages of their staff. These taxes, or social charges, are used to fund the French welfare system. The E30-billion cut would reduce the wage bills for employers induding social charges by 5.4 per cent on average. The government would also seek to reduce tax paid on profits and tackle France's notorious red tape and onerous labour regulations. The French President, Francois Hollande, called on businesses to commit to increase employment in retum for these cuts in labour costs, taxes and red tape. Source: adapted from @ the Financial Times 15.1.2014, All Rights Reserved. Explain why the measures announced by the French government might lead to (a) a rise in employment and (b) an increase in long-run aggregate supply