Explain how a reduction in the unemployment rate will affect bargaining power and nominal wages
What will be an ideal response?
As the unemployment rate decreases, it is easier for individuals to find employment at other firms. So, workers' bargaining power will increase. As bargaining power increases, the nominal wage will increase.
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Jim has the following assets and liabilities:Credit Card balance$2,000Cash$500Government bonds$2,000Stocks$5,000Checking$750Car loan balance$5,000Car$15,000Which of the following actions would decrease Jim's money demand by $200?
A. Jim writes a $200 check for cash and holds the cash. B. Jim sells a $200 government bond and puts the proceeds in his checking account. C. Jim writes a check for $200 to pay down his credit card balance. D. Jim sells $200 worth of stocks and puts the proceeds in his checking account.
In a closed economy, private saving is equal to which of the following? (Y = GDP, C = Consumption, G = Government purchases, T = Taxes, and TR = Transfers)
A) Y + TR - C - T B) Y - C - T C) Y - G - T + TR D) Y - G - T
Suppose a consumer has determined that her reservation price, R, is $75. The expected benefit of an additional search at this reservation price is $25. Based on this information we can conclude that:
A. this consumer will accept any price below $75. B. search costs are $25 per search. C. search costs are $25 per search, and this consumer will accept any price below $75. D. this consumer will reject any price above $25.
In an oligopoly market
A) the pricing decisions of all other firms have no effect on an individual firm. B) individual firms pay no attention to the behavior of other firms. C) advertising of one firm has no effect on all other firms. D) one firm's pricing decision affects all the other firms.