Firms in the country of Merka, which experiences varying levels of unemployment over time, face a very competitive labor market. Classify the given events according to how each would affect Merka's unemployment rate. Increase in the unemployment rate Answer Bank decreased unemployment benefits increase in the minimum wage increase in unions' influence Decrease in the unemployment rate introduction of employment-at-will doctrine

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter13: Earnings, Productivity, And The Job Market
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Firms in the country of Merka, which experiences varying levels of unemployment over time, face a very competitive labor
market. Classify the given events according to how each would affect Merka's unemployment rate.
Increase in the unemployment rate
Decrease in the unemployment rate
Answer Bank
decreased unemployment benefits
increase in the minimum wage
introduction of employment-at-will doctrine
increase in unions' influence
Transcribed Image Text:Firms in the country of Merka, which experiences varying levels of unemployment over time, face a very competitive labor market. Classify the given events according to how each would affect Merka's unemployment rate. Increase in the unemployment rate Decrease in the unemployment rate Answer Bank decreased unemployment benefits increase in the minimum wage introduction of employment-at-will doctrine increase in unions' influence
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