Let's assume the government of country A imposes a minimum wage of $12 per hour. Based on figure 1 below, answer the following questions:

1. At this wage level, what is the number of workers that employers demand and the number of workers that are willing to work? Explain the difference (3 marks).
2. Overall, who are the winners as a result of the wage minimum policy? Who are the losers from this policy? (4 marks)
3. What policy would you recommend to reduce unemployment? (3 marks)

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