What can a union do in order to raise the wages of its members?
What will be an ideal response?
A union can establish a wage rate above the market clearing wage rate by negotiating with firm management and then ration the available jobs among union members. It can also indirectly raise wages by limiting supply over time, raising the demand for union workers through raising their labor productivity, or by increasing the demand for union-made goods.
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An increase in real income ___ the demand for real money balances and thereby causes a ___ in the nominal rate of interest.
a. lowers; rise b. lowers; fall c. raises; rise d. raises; fall
If the quantity of fishing poles demanded is represented by the demand equation QD = 60 - P, then to solve for the price of fishing poles, the equation would be rewritten as
A) P = -60 + QD. B) P = QD + 60. C) P = 0.6QD + 10. D) P = 60 - QD.