Question 4 (7 Marks)

1. The Figure below represents labour force and employment in Australia before the bushfire devastation. AssumeE0 is the equilibrium demand and supply for labour before the bushfires. Also, assume that in order to attract people to seek employment after the bushfires, the government of Australia increased wages from AUD20 to AUD25 per hour. Answer the questions that follow.

1. What was the employed population in Australia before the bushfires? 1 Mark

ANSWER i):

1. Did the increase of the wage cause a shortage or surplus of labour? Show your calculations in order to provide your answer. 2 Marks

ANSWER ii):

1. Using the case study below, examine the effects of unemployment for a country such as Australia. 4 Marks Case study: https://disasterphilanthropy.org/disaster/2019-australian-wildfires/

ANSWER b):

Answer rating: 100% (QA)

Answer i From the given figure the equilibrium employment level before the bushfires is E0 Unfortunately without the numerical values on the axes I ca... View the full answer