Assume that the real wage in an economy is held above equilibrium.
a.Graphically illustrate how an increase in the supply of labour will change the number of unemployed workers. Be sure to label the axes and the quantities of labour hired before and after the increase in the labour supply.
b.Explain in words what happens to the number of unemployed as a result of this change.

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The Answer of Assume that the real wage in an economy is held above equilibrium.
a.Graphically illustrate how an increase in the supply of labour will change the number of unemployed workers. Be sure to label the axes and the quantities of labour hired before and after the increase in the labour supply.
b.Explain in words what happens to the number of unemployed as a result of this change.

Assume That the Real Wage in an Economy Is Held