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Using the Labour Market Model and the Labour Demand and Supply

question 86

Essay

Using the labour market model and the labour demand and supply curves,show how the real wage and the equilibrium level of employment are determined.What would happen to the real wage and the unemployment level in an oil-importing country when oil prices fall? Explain.


Definitions:

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

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