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Since the beginning of the COVID19 pandemic, many firms were forced to reduce production or close all operations. Due to this, a large number of

Since the beginning of the COVID19 pandemic, many firms were forced to reduce

production or close all operations. Due to this, a large number of firms were

forced to close down.

Explain the impact on the equilibrium wage rate and the equilibrium level of

employment if the number of employers in the market decreases.

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