Date: 1. Suppose that for given labor-market conditions, worker bargaining power throughout the economy increases. Course: Macroeconomics 1.) Using the 3-point curved line drawing tool, show the effect on the real wage and the natural rate of unemployment. Properly label your curve. 2.) Using the point drawing tool, indicate the new equilibrium point and label it "B". Carefully follow the instructions above, and only draw the required objects. In equilibrium, the effect of an increase in worker bargaining power is (1). rate of unemployment and (2). wage. (1) no change an increase a decrease in the natural no change a decrease an increase in the real Real wage, W/P 1/(1+m) Un Unemployment rate, u PS WS

Date: 1. Suppose that for given labor-market conditions, worker bargaining power throughout the economy increases. Course: Macroeconomics 1.) Using the 3-point curved line drawing tool, show the effect on the real wage and the natural rate of unemployment. Properly label your curve. 2.) Using the point drawing tool, indicate the new equilibrium point and label it "B". Carefully follow the instructions above, and only draw the required objects. In equilibrium, the effect of an increase in worker bargaining power is (1). rate of unemployment and (2). wage. (1) no change an increase a decrease in the natural no change a decrease an increase in the real Real wage, W/P 1/(1+m) Un Unemployment rate, u PS WS

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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