Considering the wage-setting relation, which one of the following will definitely result in a decrease in the natural rate of unemployment? (a) An increase in the mark-up of firms; (b) A decrease in the unemployment rate; (c) An increase in the expected price level; (d) A reduction in the labour laws protecting workers.

Considering the wage-setting relation, which one of the following will definitely result in a decrease in the natural rate of unemployment? (a) An increase in the mark-up of firms; (b) A decrease in the unemployment rate; (c) An increase in the expected price level; (d) A reduction in the labour laws protecting workers.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter12: Business Cycles And Unemployment

Section: Chapter Questions

Problem 8SQP

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(a)	An increase in the mark-up of firms;
(b)	A decrease in the unemployment rate;
(c)	An increase in the expected price level;
(d)	A reduction in the labour laws protecting workers.