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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.


Definitions:

Thigh

The part of the human leg between the hip and the knee.

Pelvis

The lower part of the torso, enclosed by the pelvic bones and containing the reproductive organs and part of the digestive tract.

Superior Vena Cava

Large but short vein that carries deoxygenated blood from the upper half of the body to the heart’s right atrium.

Inferior Vena Cava

A large vein that carries deoxygenated blood from the lower and middle body into the heart's right atrium.

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