13 graphically illustrate an increase in the labor

13. Graphically illustrate an increase in the labor supply curve and explain its impact on the
equilibrium wage rate and quantities. On a separate graph, illustrate an increase in the
labor demand curve and explain its impact on the equilibrium wage rate and quantities.
14. Using a labor supply and demand curve demonstrate the effect of a decline in the demand
for labor assuming wages are "sticky" in a downward direction.
15 Explain efficiency wage theory.
16. Explain the relative-wage explanation of unemployment.
17. Explain what the Phillips curve represents.

cause an increase in the price level. So, an increase in output will be associated with lower
unemployment and inflation.
18. How do changes in expectations cause the Phillips Curve to be unstable?