8. Suppose that for given labor-market conditions, worker bargaining power throu

Question

8. Suppose that for given labor-market conditions, worker bargaining power throughout the economy increases. 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. Label your point 'B Carefully follow the instructions above and only draw the required objects. PS In equilibrium, the effect of an increase in worker bargaining power is (1) unemployment and (2) in the natural rate of in the real wage. WS Unemployment rate, u (1) O a decrease O no change O an increase (2) O a decrease O an increase O no change

Explanation / Answer

Answer:-

Q1. In equlibrium, te effect of an increse in worer bargaining power then No Change in the natural rate of unemployment.

Q2. In equlibrium, te effect of an increse in worer bargaining power then No Change in the natural rate of unemployment and No Change in the real wage.

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