Suppose the economy is initially at labour market equilibrium with stable prices (inflation is zero). At the beginning of year 1, Investment declines and the economy moves into recession with high unemployment. 1. What is meant by labour market equilibrium? (1 mark) 2. If Investment declines what happens to Aggregate Demand and Employment. (2 marks) 3. If Investment declines explain why a negative bargaining gap arises. (1 mark) 4. Who are the winners and losers in this economy during a recession? (2 marks)