When a Union Raises the Wage Above the Equilibrium Level

question 307

True/False

When a union raises the wage above the equilibrium level, it reduces the quantity of labor supplied and raises the quantity of labor demanded, resulting in unemployment.

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Definitions:

Fundamental Consequences

The basic or primary outcomes that result from certain actions or decisions.

Increasing Number

A growing quantity or count of items or entities.

More Complex

A description of something that is composed of many interconnected parts, thus being difficult to understand or to deal with.

Values, Interests

Core principles or standards of behavior, and the advantages or benefits that motivate individuals or groups.