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Cost Reduction
Positive measures to effect a lowering of costs include:
reducing national insurance contributions (an ad valorem tax on employing labor);
improving the supply and quality of labor, e.g. by developing training schemes, encouraging flexible working hours to attract part-time workers, improving mobility, granting subsidies to firms to locate in the Assisted Areas where surplus workers are available;
providing advisory services.
illustrate the effects of a reeal wage existing in the labour market if it is perfectly competitive
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What is the difference between the short-run framework and the long-run framework? Discuss how each relates to supply and demand.
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