Figure 2.24 depicts the initial state of the labor market, with employment on the horizontal axis (ranging 0-90) and the real wage on the vertical axis (ranging 0-λ). The labor force is represented by a vertical line at an employment level of 90. The model includes a horizontal line for the average product of labor (λ) and a lower horizontal price-setting (PS) curve corresponding to a wage share of 79% (at 0.79λ). The initial equilibrium is at point A, with coordinates (83, 0.79λ), where the upward-sloping, convex wage-setting (WS) curve intersects the PS curve. At this point, unemployment is represented by the 7 individuals between the employment level of 83 and the total labor force of 90.