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Question 5 (a) COVID-19 pandemics has caused disruptions in economic activities in most affected countries. One of the worst effects is the increase in unemployment.

Question 5 (a) COVID-19 pandemics has caused disruptions in economic activities in most affected countries. One of the worst effects is the increase in unemployment.

(i) Explain one recovery measure that can help ease the unemployed workers. [2 marks]

(ii) Using the Beveridge curve and WS-PS model, explain the impact of the recovery measure during the downturn on economy's vacancy and unemployment rate. [8 marks]

(b) Discuss why a firm pays higher wages to its workers relative to the other similar firms in the market.

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