Hi, I need help solving this Macroeconomics question. For the graph (demand line) adjustment portion of the question, the shift left or right options are highlighted. Thank you!

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter21: Unemployment
Section: Chapter Questions
Problem 44CTQ: The U.S. unemployment rate increased from 4.6 in July 2001 to 5.9 by June 2002. Without studying the...
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Hi,

I need help solving this Macroeconomics question.

For the graph (demand line) adjustment portion of the question, the shift left or right options are highlighted.

Thank you!

Please adjust the graph to show the impact of a recession, where the theoretical market equilibrium wage rate falls to $10/h.
Then, answer the two questions assuming wages are sticky downward.
30
28
26
24
22
20
18
16
| 14
& 12
10
6
4
D
2 3 4 5 6 7
Labor quantity (in millions of workers)
1
9 10 11 12 13 14 15
After the effects of the recession are felt, what is the size of the increase or decrease in unemployment?
increase or decrease in unemployment =
million people
What is the actual wage rate that predominates in the market?
Wage rate (per hour)
%24
Transcribed Image Text:Please adjust the graph to show the impact of a recession, where the theoretical market equilibrium wage rate falls to $10/h. Then, answer the two questions assuming wages are sticky downward. 30 28 26 24 22 20 18 16 | 14 & 12 10 6 4 D 2 3 4 5 6 7 Labor quantity (in millions of workers) 1 9 10 11 12 13 14 15 After the effects of the recession are felt, what is the size of the increase or decrease in unemployment? increase or decrease in unemployment = million people What is the actual wage rate that predominates in the market? Wage rate (per hour) %24
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