Consider an economy in the medium-run equilibrium (where the wage-setting and the price-setting curves cross). Suppose that more workers join trade unions, which increases their bargaining power against employers. Assume that the level of employment and the labour supply remain constant in the short run.

Consider an economy in the medium-run equilibrium (where the wage-setting and the price-setting curves cross). Suppose that more workers join trade unions, which increases their bargaining power against employers. Assume that the level of employment and the labour supply remain constant in the short run.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter20: Unemployment

Section: Chapter Questions

Problem 4PA

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