Please watch video for reference and check picture. (1) Based on the labor market, what type ofunemployment would be closest to the situation of displaced OFWs during the COVID-19 pandemic? (2) In your assessment, are the policies described in the video adequate to address this type of unemployment? (3) If not, how do you think can government intervention be improved? Reference: https://youtu.be/WhtTviFACgI

OF ECONOMICS Upward Sloping Supply Curve Backward-Bending Supply Curve Supply of Labor Supply of Labor Income effect is stronger Wage (price of labor) Wage (price of labor) Substitution effect is stronger Quantity of Labor Quantity of Labor ATENEO DE MANILA UNIVERSITY DEPARTMENT OF ECONOMICS Equilibrium in the Microeconomic Labor Market $100,000 $90,000 Excess supply of labor Assumption: perfect competition $80,000 * S An above-equilibrium salary $70,000 E Equilibrium salary . Equilibrium = market-clearing wage $60,000 . D A below-equilibrium salary - Wage above equilibrium: Salary $50,000 Excess demand $40,000 or shortage Qs > QD (surplus) $30,000 $20,000 - Wage below equilibrium: $10,000 Qs