1- Use the WS and PS relations to show the determination of the equilibrium real wage...

1- Use the WS and PS relations to show the determination of the equilibrium real wage and the natural rate of unemployment in the labor market both algebraically and graphically. Also, examine the effects of the following events on the natural rate of unemployment and on the real wage. Be sure to explain the effects of the event and to illustrate your answer graphically.

a. an increase in unemployment benefits

b. weak antitrust legislation

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Expert Solution

Rahul Sunny answered 2 years ago

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