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{"ops":[{"insert":"(c) Suppose that 20,000 of the employed switches to jobs in the underground \n\neconomy. When interviewed by STATIN, 50% of these switchers report that they \n\nare not working and not seeking work, while the other 50% report that they are \n\nnot working but seeking work. Explain what happens to the official \n\nunemployment rate and the \u201ctrue\u201d unemployment rate. (2 marks)\n\n(d) Illustrate and carefully explain the impact of an increase in the income tax rate \n\nfrom 25 percent to 35 percent on the demand for labour, supply of labour, \n\nequilibrium wage and level of employment. (6 marks)\n\n\n\n\n\n(f) With the aid of a well labelled diagram, carefully explain the impact on the \n\nmoney market if there was a discovery of gold that fuels inflation. (5 marks\n"}]}
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