Explain what effect an increase in the unemployment rate will have on the real wage based on: (1 ) the WS relation; and (2 ) the PS relation
What will be an ideal response?
An increase in the unemployment rate will decrease bargaining power, decrease the nominal wage, and therefore decrease the real wage based on wage setting behavior. Changes in the unemployment rate have no effect on the real wage based on price setting behavior.
Economics
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A market structure in which only one seller sells a product for which there are no close substitutes is called a
a. cartel b. oligopoly c. monopoly d. trust
Economics
The above figure shows the marginal benefit from pollution for two firms
If both firms receive a marketable permit to pollute 25 units of pollution each, how much will each firm pollute and how much will a permit for one unit of pollution be worth?
Economics