February 10, 2010
Labor Unions Became Better Organized, Allowing Them To Drive Up Wages In The Short Run In The Us On Ad/as?
Labor unions become better organized, and this allows them to drive up wages in the short run in the US. What would be the effects on the AD/AS graph in the short run and long run?
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Comments on Labor Unions Became Better Organized, Allowing Them To Drive Up Wages In The Short Run In The Us On Ad/as?
Personal intuition:
This sounds like classical unemployment to me. When classical unemployment increase, output decrease, consumption decrease, AD shift left. Personal intuition, might be wrong, better to double confirm with your professor.