N6

Draw a diagram for the Labour market. Show equilibrium wage rate at$20/hr. Level of employment at this wage rate is 55000 workers. Depict this situation on your diagram. What is the level of unemployment at$20/hr? Now assume the labour union successfully negotiates a minimum wage of$30/hr. On your diagram show the number of workers employed as 52,000 , the number of people in the labour force as 57,000 . Indicate the segment showing "unemployment" on your diagram. Calculate the Unemployment rate given this information. What type of unemployment is being depicted here? All curves and axes must be labeled accurately.