Graphically Illustrate (Using the WS and PS Relations) and Explain

question 40

Essay

Graphically illustrate (using the WS and PS relations) and explain the effects of a decrease in the markup on the equilibrium real wage, the natural rate of unemployment, the natural level of employment, and the natural level of output.

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Definitions:

Periscopes

An optical instrument used for observation over, around, or through an object, obstacle, or condition that prevents direct line-of-sight observation, commonly found in submarines.

Mud-Brick

A building material made of a mixture of mud, clay, and water, often with straw added, used to construct walls and buildings in many ancient and modern cultures.

Building Materials

The substance or substances used in the construction or fabrication of buildings, such as wood, stone, brick, metal, or concrete.

Doric Frieze

The part of the entablature in Doric architecture that lies between the architrave and the cornice, usually decorated with metopes and triglyphs.