11. The diagram below depicts the aggregate labour market. Why might the wage rate remain at W₁, and how would you label the distance b-a? Real wage rate W₁ AS, AD₁ Number of workers (a) The rate cannot stay at W₁, b-a is equilibrium unemployment (b) The efficiency wage hypothesis explains why the rate may stay at W,₁, b-a is disequilibrium unemployment (c) The actions of trade unions explain why the wage will remain at W₁, b-a is frictional unemployment (d) The introduction of the minimum wage keeps the rate at W₁, b-a is frictional unemployment

11. The diagram below depicts the aggregate labour market. Why might the wage rate remain at W₁, and how would you label the distance b-a? Real wage rate W₁ AS, AD₁ Number of workers (a) The rate cannot stay at W₁, b-a is equilibrium unemployment (b) The efficiency wage hypothesis explains why the rate may stay at W,₁, b-a is disequilibrium unemployment (c) The actions of trade unions explain why the wage will remain at W₁, b-a is frictional unemployment (d) The introduction of the minimum wage keeps the rate at W₁, b-a is frictional unemployment

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter21: Unemployment

Section: Chapter Questions

Problem 41CTQ: Unemployment rates have been higher in many European countries in recent decades than in the United...

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QUESTION 18 The diagram below depicts the aggregate labour market. Why might the wage rate remain at W₁, and how would you label the distance b-a? Real wage rate W₁ 0 a AS₁ AD b Number of workers O a. The actions of trade unions explain why the wage will remain at W₁, b-a is frictional unemployment O b. The introduction of the minimum wage keeps the rate at W₁, b-a is frictional unemployment O c. The rate cannot stay at W₁, b-a is equilibrium unemployment O d. The efficiency wage hypothesis explains why the rate may stay at W₁, b-a is disequilibrium unemployment
Please only awnser this question I must give uou the previous question below it for context Please awnser this one: In the same model of the labour market as in the previous question,Select one or more:a. A rise in labour supply will lead to a rise in wagesb. Given a constant mark-up a rise in labour productivity will lead to higher wagesc. A rise in product market competition will lead to a higher mark-upd. Equilibrium employment is given by the intersection of the wage and profit curves This one is just for context so you can awnser the question: Given labour market equilibrium with identical workers, as set out in CORESelect one or more:a. Unemployment is always voluntaryb. Workers who are involuntarily unemployed cannot gain a job at any wagec. A Nash equilibrium existsd. Measured unemployment will be zero