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

question 68

Essay

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


Definitions:

Expectations

Beliefs or forecasts about what will happen in the future based on past experience or evidence.

Pressure

The pressure is the amount of force exerted at a right angle to the surface of an object, divided by the area across which the force is spread.

General Adaptation Syndrome

A three-phase response model describing the body's physiological changes to stress: alarm, resistance, and exhaustion.

Physiological Responses

Physical reactions of the body to internal or external stimuli, such as changes in heart rate or hormone levels.

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