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Answer on Macroeconomics Question for Nick

Question #28693

Assume that the real wage in an economy is held above equilibrium.
a. Graphically illustrate how an increase in the supply of labor will change the number
of unemployed workers. Be sure to label the axes and the quantities of labor hired
before and after the technological progress.
b. Explain in words what happens to the number of unemployed as a result of this
change.

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