Have unions been successful at raising wages for their members? What about raising wages for all workers?
What will be an ideal response?
Yes, they have been successful at raising wages for their members. To the extent that higher union wages come by generating an excess supply of workers, some of those workers unable to get jobs may go into the nonunion sector looking for work. This would tend to decrease wages for nonunion workers. Hence, it is likely that unions have caused nonunion workers to receive lower wages than they would if there were no unions.
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The lower the exchange rate, the cheaper are foreign-produced goods and services
Indicate whether the statement is true or false
The marginal propensity to consume is 0.50, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.05. What is the size of the multiplier?
A) 1.00 B) 2.86 C) 3.00 D) 0.50