Using Figure 22.9 as your starting point, with a minimum wage of W2 in place, analyze how each of the following events will afect the demand and supply curves for unskilled labor, the number of laborers hired by frms, and the amount of surplus labor that exists:

a. The economy booms and the demand for goods and services signifcantly increases.

b. The federal government raises the minimum wage above W2

c. Immigration into the United States signifcantly increases.

d. The government reduces the amount of social security taxes paid by employers who hire workers and reduces the amount of social security taxes withheld from workers’ paychecks.

e. The government signifcantly cuts education spending resulting in a large decrease in the productivity of unskilled workers.