Question

Suppose Rawanda is a conflict zone & due to civil war its Labor start's moving out of the count Considering the LRAS reflect the effect on Labor Market and other macroeconomic Variable. Draw the Graph of other macroeconomics variable Labor MKT (Graph)Exchange rate (Graph)With Labeling

Answer 1

The following graph graph shows depreciation of exchange rate in the long run aggregate supply

The following graph shows reduction in labor demand which reduces employment and the wage level.