QUESTION 9.10CHOOSE THE CORRECT ANSWER(S)Figure 9.16 (page 388) depicts the model of a labour market where there are 90 million workers. The current labour market equilibrium is at A. Now con- sider the case where the total labour supply is increased to 100 million. Based on this information, which of the following statements are correct regarding the adjustment process in the labour market?

Initially, unemployment doubles.

Higher unemployment results in a reduction in the employment rent enjoyed by workers employed at the current wage.

The firms are required to raise wages to induce workers to work hard.

The wage-setting curve shifts downward.

Window Help u .Romaii \"S El Sun4z17PM Q o @ The_Economy_Unit_9_20200331.pdf (page 28 of 48) KLTVHIEDH'IHQSearch modies W oumufm up'so a wor ers realm share and their employers receive the rest. In the right panel this is shown by the second 'kink' in the Lorenz curve, where we see that the poorest 90 people in the population (the 10 unemployed workers and the 80 employees, shown on the horizontal axis) receive 60% of the total output (on the vertical axis). The size of the shaded area measures the extent of inequality, and the Gini coefficient is 0.36. To learn how to calculate the Gini coefficient from information like this see the Einstein at the end of this section. The Lorenz curve is made up of three line segments with the beginning point having coordinates of (0, O) and the endpoint (1, I). The first kink in the curve occurs when we have counted all the unemployed people. The second is the interior point, whose coordinates are (fraction of total number of economically active population, fraction of total output received as o i Price- 7777777777777 E sening Wage-Sam rig curve Real wage of income (%) Wage Cumulative share 0 i 0 10 90 100 t_l__._._l Employment, N Unemployed Employed miners Cumulative share of the population from lowest to highest income (99) Figure 9.16 The distribution of income at labour market equilibrium. neatereememn '5 Screen Shot 2020-10...6l43 P Screen Shot 2020-10l..'ll06 P Screen Shot 2020-1'lm8.26 PM Screen Shot 2020-11...5.38 PM