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Q2 - The US economic recovery and the labour market using WS/PS model Think critically about the following 'wage setting' (WS) factors at play here

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Q2 - The US economic recovery and the labour market using WS/PS model Think critically about the following 'wage setting' (WS) factors at play here in the WS/PS model when reading the following articles (listed in chronological order): (i) unemployment benefits: Dupor, Bill and Iris Arbogast (2022) 'Employment Effects of Pandemic Emergency Unemployment Benefits: Incentives Matter', Federal Reserve Bank of St. Louis, August 4th, available: https://www.stlouisfed.org/publications/regional-economist/2022/aug/employment-effects-pandemic-emergency-unemployment-benefits (ii) working bargaining power (and unions): Greenhouse, Steven (2021) 'Striketober' is showing workers' rising power - but will it lead to lasting change?', The Guardian, October 23rd, available: https://www.theguardian.com/us-news/2021/oct/23/striketober-unions-strikes-workers-lasting-change Bryant, Chris (2022) 'Workers of the World Are Uniting Again', Bloomberg, June 30th, available: https://www.bloomberg.com/opinion/articles/2022-06-30/labor-strikes-in-uk-us- workers-unite-against-inflation-cost-of-living-crisis?leadSourcesuverify%20wall [Free access, see Reading List on ECON1002 Blackboard site] Ghilarducci, Teresa (2022) Worker Power Is Weakening, Indicators Show', Forbes, September 14th, available: https://www.forbes.com/sites/teresaghilarducci/2022/09/14/worker-power-is-weakening-indicators-show/?sh=57ca92aa5325 In this context, use the WS/PS model to illustrate and explain in some detail what has happened to the US economy as it has recovered from the effects of COVID-19 until July 2022 where the unemployment rate was at 3.5%. In your diagram, begin the economy in July 2020 where pandemic containment policies cut global production which led to an unemployment rate of 10.2%. Also, assume there was a strong positive productivity growth over the 2-year period of inquiry. [500 or so words is the suggested amount for Q2] 12 marks for quality of analysis, including diagram Apply key economic concepts taught in Modules L5 and Lo in ECON1002 SP3 2022, and refer to key sentences and ideas from the salient articles to support your analysis - where relevant

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