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Employment and unemployment and potential gdp

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Reference no: EM131669741

Demand for labour is decreasing for any given real wage.

a. Explain two reasons why an economy might see a decrease in the demand for labour.

b. Using the relevant graphs, show and explain the effect on wage, employment and unemployment and potential GDP.

c. Explain in detail the effect on the above outcome if a minimum wage were in place.

Reference no: EM131669741

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