Order the answer to: As noted in the text, European governments tend to make

Assignment Help business-economics Order the answer to: As noted in the text, European governments tend to make

business-economics

Order the answer to: As noted in the text, European governments tend to make

Question a. In the absence of government interference, what are the equilibrium wage and number of graduates hired per year? Illustrate with a diagram. Will there be anyone seeking a job at the equilibrium wage who is unable to find one-that is, will there be anyone who is involuntarily unemployed?
b. Suppose the French government sets a minimum yearly wage of ?¬35,000. Is there any involuntary unemployment at this wage? If so, how much? Illustrate with a diagram. What if the minimum wage is set at ?¬40,000? Also illustrate with a diagram.
c. Given your answer to part b and the information in the table, what do you think is the relationship between the level of involuntary unemployment and the level of the minimum wage? Who benefits from such a policy? Who loses? What is the missed opportunity here?
Subject business-economics
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