Part One: The Labor Market

• Attach a diagram illustrating the supply and demand for labor in the labor market, showing the equilibrium wage rate (W0) and employment level (Q0), and the surplus of labor or unemployment that occurs when the minimum wage is set above the equilibrium wage rate (Wmin).

Part Two: The AD/SRAS/LRAS Model

• Attach a diagram of the AD/SRAS/LRAS model, showing the long-run equilibrium at point A, the short-run equilibrium after the increase in minimum wage at point B (stagflation), and the eventual shift of the SRAS curve due to the introduction of kiosks, leading to a new short-run equilibrium at point C and long-run equilibrium at point D (full employment).

Part three: Back to the AD/SRAS/LRAS Model

• Attach a diagram of the AD/SRAS/LRAS model, showing the initial short-run equilibrium at point B (stagflation), and the subsequent shift of the SRAS curve due to the introduction of kiosks, leading to a new short-run equilibrium at point C and long-run equilibrium at point D (full employment).