Question 1. With reference to the Diagram above:a) Explain what you understand by 'N' in the Diagram; what does this curve represent b) Explain what you understand by the terms 'disequilibrium' and 'equilibrium' unemployment c) Explain why (typically) the 'average real wage rate' is held above equilibrium at W2 Question 2. a) What is the above diagram outlining? b) Can you describe any Macroeconomic difficulties related to the above diagram

\fQuestion 2. National income and the size of the public-sector deficit or surplus G. T Tax revenue SURPLUS DEFICIT Gov. expenditure (incl. benefits) O Y