Unemployment is one of the major macroeconomic issues that concern policy makers. Some economists have argued the main reason for a rise in unemployment during the great recession 2008/09 is a drop in labour demand. a) (7 marks) Show the effects of a drop in labour demand curve using the labour supply and labour demand curves in the competitive equilibrium with perfect information. Can it predict a rise in unemployment? b) (7 marks) Suppose now there is imperfect information so that rms cannot perfectly observe workers' effort. Explain how your answers to part (a) are changed. 0) (6 marks) Another reason why a drop in labour demand can imply a higher unemployment rate is the minimum wage law. Explain how it works using labour supply and labour demand curves. Can this be a main cause of the rise in aggregate unemployment during the great recession for the United States