8. Consider an economy with two labor markets, neither of which is unionized. Now suppose a union...

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8. Consider an economy with two labor markets, neither of which is unionized. Now suppose a union is established in one market.

a. Show the effect of the union on the market in which it is formed. In what sense is the quantity of labor employed in this market an inefficient quantity?

b. Show the effect of the union on the nonunionized market. What happens to the equilibrium wage in this market?

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Principles Of Macroeconomics

ISBN: 9780324171891

3rd Edition

Authors: N. Gregory Mankiw

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Question Posted: Sep 27, 2024 07:01 AM

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8. Consider an economy with two labor markets, neither of which is unionized. Now suppose a union...

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Principles Of Macroeconomics

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