Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed ________ and the number employed ________.

A. increases; does not change
B. increases; increases
C. increases; decreases
D. decreases; increases

Answer: C

Economics

You might also like to view...

Those who favor changes in the market for health care that would make it more like the markets for other goods and services are generally in favor of universal health care coverage

Indicate whether the statement is true or false

Economics

The Fed has the greatest control over which of the following?

A) the money multiplier B) discount loans C) the amount of excess reserves D) the nonborrowed monetary base

Economics