Hi George, For part (ii), you need to calculate the level of disequilibrium unemployment (ie the difference between the aggregate supply of labour and the aggregate demand for labour) at a wage rate of £12 per hour. In part (v), the government payment will affect the supply of labour (it will shift the numbers up two rows to reflect that the real wage is now £2 per hour higher). The demand for labour will remain unchanged. So you need to find the level of employment for which the new (shifted) supply of labour figures equal the original demand for labour figures. I hope that helps! Anna
