(Solved): 4. (20 Points) The Efficiency Wage Model. Draw the efficiency wage WS - PS diagram for the followi ...

4. (20 Points) The Efficiency Wage Model. Draw the efficiency wage WS - PS diagram for the following cases. Use the equations for the equilibrium real-wage and unemployment rate in the efficiency wage model from your textbook to discuss the effect of each change. Make sure to identify what parameter in the model is being impacted with each shock. a. A reduction in unemployment benefits. b. An improvement in working conditions. c. A new camera system that improves monitoring.