Labor Market Theory Assume that the labor market in a fictional country is characterized by a downward-sloping labor demand (L d (w) = 1250 w2 ), and an upward-sloping labor supply (L s (w) = 2w 2 ). a. Unemployment rate We can show, although you are not required to do so for this exercise, that equilibrium wage for this economy is w = 5, and equilibrium employment is L = 50. Given what is shown in Figure 1, if the government of Harponia were to impose a minimum wage of 5.5, what would be the unemployment rate (u ) predicted by the frictionless model? (25 points)