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

question 20

Essay

Graphically illustrate (using the WS and PS relations)and explain the effects of an increase 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:

Dividend Income

Income earned from owning shares in a company, paid out from the company's earnings to shareholders.

Common Shares

Equity securities that represent ownership in a company, entitling shareholders to vote and typically to receive dividends.

Other Income

Revenue from non-core business activities, including interest, dividends, or any other non-operational income sources.

Trading Investments

Trading investments refer to securities bought and held primarily for selling in the short term to profit from their price fluctuations.