Observation that wages are sticky downwards


(Question 1) During the recession we have seen a significant increase in unemployment. Use the model of supply and demand to illustrate what has happened.

(Question 2) It is a common observation that wages are sticky downwards. Discuss the implications of this in relation to part (a) of the question.

Format your paper consistent with APA guidelines. Be sure to properly cite your references. If you used an electronic source, include the URL. If you used a printed source, attach a copy of the data to your paper

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Macroeconomics: Observation that wages are sticky downwards
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