Problem
Suppose that, initially, the Pennsylvania economy is in equilibrium with no unemployment: LS = 1,000,000 + 200W and LD = 19,000,000 - 300W, where W = the annual wages and L = the number of workers. Then, structural unemployment arises because the demand for labor falls in Pennsylvania, but wages there are inflexible downward and no one moves out of state. If labor demand falls to LD = 18,000,000 - 300W, how many workers will be unemployed in Pennsylvania? What will be its unemployment rate?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.