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Fiscal Policy - Supply Side effects in the labour market (15 marks) Look at the chart below, use graph paper and create a graph showing the labour market in equilibrium. (2 marks for a clearly labelled graph with a good scale. Clearly label your graph and identify the following: the equilibrium real wage and (1.5 marks) the equilibrium quantity of labour. (1.5 marks) Real Wage (5 Quantity of Labour Quantity of Labour per hour) Demanded (millions of Supplied (millions of hours per year) hours per year) The government of the country decides to put in a $5 per hour income tax. The information is contained in the table below. Please note I have left in the old labour supply for a reference. Real Wage Quantity of Labour Quantity of Quantity of (5 per hour) Demanded {millions Labour Supplied Labour Supplied of hours per year) (millions of with a $5 Income hours per year) tau (millions of hours per year) Draw a new graph showing the effects of the income tax on the labour market. Be sure to show the old equilibrium and now identify the following: the new equilibrium wage rate \"before tax\" this is as per our textbook; (2.5 marks) the new equilibrium wage rate \"after tax\" this is as per out textbook, (2.5 marks) the new quantity of labour in equilibrium, and (2.5 marks} the tax wedge. (2.5 marks) Please upload your le to the Week 14 folder. How might this show up on the nal exam? If! give you the graph, could you identi! the values and the tax wedge P Notice how the labour market allows for examination of demand and supply as well as fiscal policy