Question: Draw a diagram with the wage-setting relation and price-setting relation. Label your wage-setting curve WS and your price setting line PS. Label the y

Draw a diagram with the wage-setting relation and price-setting relation. Label your wage-setting curve WS and your price setting line PS. Label the y axis the Real Wage and the x axis the unemployment rate. Label your equilibrium natural rate of unemployment and equilibrium real wage. Label the equilibrium point A. a. Suppose the United States passes a law that makes it more difficult to fire workers. Draw the impact of the law on the diagram. b. What happened to the natural rate of unemployment in equilibrium? c. What happened to the real wage in equilibrium? d. Explain the intuition behind parts b and c

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