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:

Defence Mechanism

Unconscious mental tactics employed to shield oneself from the distress caused by thoughts or feelings that are deemed unacceptable.

Rationalization

A defense mechanism in which controversial behaviors or feelings are justified and explained in a seemingly rational or logical manner to avoid the true explanation.

Projection

A defense mechanism where an individual attributes their own unacceptable thoughts, feelings, or motives to someone else.

Sigmund Freud

An Austrian neurologist best known for developing the theories and techniques of psychoanalysis, including the concepts of the unconscious mind, Oedipus complex, and defense mechanisms.