To the Extent That Unions Can Transfer Profits from Unionized

question 79

Multiple Choice

To the extent that unions can transfer profits from unionized employers to union workers, they will

• A) reduce the incentive of unionized employers to invest in fixed capital and research.
• B) increase employment in the unionized sector.
• C) reduce the incentive of nonunion firms to invest and expand their output.
• D) increase the productivity of labor in the long run.

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Definitions:

Aggregate Demand Curve

A graph showing the relationship between the total quantity of goods and services demanded across all levels of prices in an economy.

Real Output

The quantity of goods and services produced in an economy adjusted for inflation, representing the actual productivity.

Price Level

A measure of the average prices of goods and services in an economy at a specific point in time.

Aggregate Demand Curve

A graphical representation showing the relationship between the total quantity of goods and services demanded and the overall price level.