(a). Provide an explanation of the aggregate production function that defines the production possibilities that are open to firms in an economy in the short run. (100words)
(b). In the context of the labor market, explain why there is an inverse relationship between the wage rate and the demand for labor, and why there is a positive relationship between the wage rate and the supply of labor. (100words)
(c). In the context of the labor market, explain and differentiate between frictional, structural and cyclical unemployment. Also provide a definition of the natural rate of unemployment. (100words)
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