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In: Economics

4. In the midst of Covid-19 pandemic, firms cut production due to lockdown. How will firms’...

4. In the midst of Covid-19 pandemic, firms cut production due to lockdown.

  1. How will firms’ cutting of production affect employment? Explain you answer using an appropriate diagram.                                                                                                        (2)

  1. Suppose firms do not want to lay off workers, explain how firms decision may affect employment and wages in the labour market. Explain labour market using an appropriate diagram.     (3)

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Expert Solution

Rahul Sunny answered 2 years ago
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