Please adjust the graph to show the impact of a recession, where the theoretical market equilibrium wage rate falls to $10/h. Then, answer the two questions assuming wages are sticky downward. 30 28 26 24 22 20 18 16 14 12 10 8 6. 4 3 4 5 6 7 8 9 10 11 12 13 14 15 Labor quantity (in millions of workers) 1 After the effects of the recession are felt, what is the size of the increase or decrease in unemployment? increase or decrease in unemployment = million people What is the actual wage rate that predominates in the market? 2$ Wage rate (per hour)

Microeconomics: Private and Public Choice (MindTap Course List)
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Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
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Chapter13: Earnings, Productivity, And The Job Market
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Hi, Please help me with this Econ problem, specifically, the demand (D) line shift and responses to the two questions. Thank you!
Please adjust the graph to show the impact of a recession, where the theoretical market equilibrium wage rate falls to $10/h.
Then, answer the two questions assuming wages are sticky downward.
30
28
26
24
22
20
18
16
| 14
& 12
10
6
4
D
2 3 4 5 6 7
Labor quantity (in millions of workers)
1
9 10 11 12 13 14 15
After the effects of the recession are felt, what is the size of the increase or decrease in unemployment?
increase or decrease in unemployment =
million people
What is the actual wage rate that predominates in the market?
Wage rate (per hour)
%24
Transcribed Image Text:Please adjust the graph to show the impact of a recession, where the theoretical market equilibrium wage rate falls to $10/h. Then, answer the two questions assuming wages are sticky downward. 30 28 26 24 22 20 18 16 | 14 & 12 10 6 4 D 2 3 4 5 6 7 Labor quantity (in millions of workers) 1 9 10 11 12 13 14 15 After the effects of the recession are felt, what is the size of the increase or decrease in unemployment? increase or decrease in unemployment = million people What is the actual wage rate that predominates in the market? Wage rate (per hour) %24
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