Suppose, in the hypothetical economy the demand for labour equation is: LD = 175 - 12.5 ( WP ), the supply of labour equation is: LS = 105 + 5 (WP ), and the real wage is set at $4.4. What is the size of the real-wage unemployment in this economy? Suppose the search unemployment amounts 5 workers. What is the natural rate of unemployment in this economy? Show the situation on the labour market graph, putting figures from your calculations. (b) What are the causes for the real wage rigidity? Explain briefly. (c) Why might a firm pay wages in excess of the competitive equilibrium? Give all the possible reasons. (d) What are the forms of the asymmetry of information in the efficiency wage theory