Suppose that the "wage distribution" in the economy improves: for the same level of the wage, a higher fraction of workers receive a wage offer (as depicted by the movement from H1(w) to H2(w) in the first picture). What is the effect on the long run equilibrium of the labor market, assuming that the reservation wage is unchanged? (a) 1 pH,(w*) S(1-U) pH, (w*) H,(w) H,(w) (c) (b) pH, (w*) S(1-U) pH(w*) pH,(w*) S(1-U,) S(1-U,) U

Suppose that the "wage distribution" in the economy improves: for the same level of the wage, a higher fraction of workers receive a wage offer (as depicted by the movement from H1(w) to H2(w) in the first picture). What is the effect on the long run equilibrium of the labor market, assuming that the reservation wage is unchanged? (a) 1 pH,(w) S(1-U) pH, (w) H,(w) H,(w) (c) (b) pH, (w) S(1-U) pH(w) pH,(w*) S(1-U,) S(1-U,) U

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 3PA

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