Question: hello. I'm trying to work through some past papers in preparation for my exam, may you please explain how to attempt this? QUESTION 1 (10

hello. I'm trying to work through some past papers in preparation for my exam, may you please explain how to attempt this?

hello. I'm trying to work through some past papers in preparation for

QUESTION 1 (10 MARKS) The figure below shows our model of the labour market. : Labour supply ' ----------------------------------------------------------------------------- Average product of labour Price-setting curve Real wage Equilibrium unemployment Demanddeficient or cyclical E unemployment, at B Wage-setting rurve T Total involuntary ' i unemployment, at B 0 'r 1 i l Employment, N A. Explain Why point B is not a point of equilibrium in the labour market. (3 marks) B. \"The adjustment from point B to point X will be automatic.\" Discuss this statement. (3 marks) C. How could a government help the labour market move from point B to point X? Use a model to help illustrate your answer. (4 marks)

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