graph

import numpy as np
import matplotlib.pyplot as plt

# Data for the graph
unemployment_rate = np.linspace(0, 0.2, 100)  # Unemployment rate (u) from 0% to 20%
real_wage = 1 - 3 * unemployment_rate  # A simple negative relationship between real wage and unemployment rate

# Create the plot
plt.figure(figsize=(8, 6))
plt.plot(unemployment_rate, real_wage, label='WS (Wage-setting relation)', color='b')

# Labels and title
plt.title('Wage-setting Relation', fontsize=14)
plt.xlabel('Unemployment Rate (u)', fontsize=12)
plt.ylabel('Real Wage (W/P)', fontsize=12)
plt.grid(True)

# Show the plot
plt.legend()
plt.show()