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    Vroxwlrqv Iru Sureohpv WR Fkdswhu : Pdfur0hfrqrplh LL

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    tegegn mogessie
    1. An increase in the reservation wage (W) leads to an increase in the wage set by the monopoly union according to the model. This causes employment to drop and unemployment to increase as labor demand slopes downward. 2. Introducing some market power for firms in the goods market shifts labor demand positively according to the firm's demand elasticity - the more competitive the goods market, the higher the demand for labor at a given real wage. 3. A fall in the degree of progressivity of the tax system (a rise in s) increases both the wage rate and unemployment according to the model. 4. An increase in the payroll tax rate (τw) shifts labor demand to the left according

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    Vroxwlrqv Iru Sureohpv WR Fkdswhu : Pdfur0hfrqrplh LL

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    tegegn mogessie
    20 views5 pages
    1. An increase in the reservation wage (W) leads to an increase in the wage set by the monopoly union according to the model. This causes employment to drop and unemployment to increase as labor demand slopes downward. 2. Introducing some market power for firms in the goods market shifts labor demand positively according to the firm's demand elasticity - the more competitive the goods market, the higher the demand for labor at a given real wage. 3. A fall in the degree of progressivity of the tax system (a rise in s) increases both the wage rate and unemployment according to the model. 4. An increase in the payroll tax rate (τw) shifts labor demand to the left according

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    Heijdra slides and questions

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    1. An increase in the reservation wage (W) leads to an increase in the wage set by the monopoly union according to the model. This causes employment to drop and unemployment to increase as labor demand slopes downward. 2. Introducing some market power for firms in the goods market shifts labor demand positively according to the firm's demand elasticity - the more competitive the goods market, the higher the demand for labor at a given real wage. 3. A fall in the degree of progressivity of the tax system (a rise in s) increases both the wage rate and unemployment according to the model. 4. An increase in the payroll tax rate (τw) shifts labor demand to the left according

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views5 pages

    Vroxwlrqv Iru Sureohpv WR Fkdswhu : Pdfur0hfrqrplh LL

    Uploaded by

    tegegn mogessie
    1. An increase in the reservation wage (W) leads to an increase in the wage set by the monopoly union according to the model. This causes employment to drop and unemployment to increase as labor demand slopes downward. 2. Introducing some market power for firms in the goods market shifts labor demand positively according to the firm's demand elasticity - the more competitive the goods market, the higher the demand for labor at a given real wage. 3. A fall in the degree of progressivity of the tax system (a rise in s) increases both the wage rate and unemployment according to the model. 4. An increase in the payroll tax rate (τw) shifts labor demand to the left according

    Copyright:

    © All Rights Reserved
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