Imagine an economy where a wave of mergers and acquisitions significantly reduces the number of competing firms in most major industries. Assuming labor productivity remains unchanged, what is the most likely consequence for the curve representing the real wage that firms are willing to pay at any given level of employment?

A new government policy that strengthens anti-monopoly laws and encourages new business startups would cause the curve representing the real wage firms are willing to pay to shift downwards.

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Analyzing an Economy-Wide Cost Shock

Pandemic-Induced Supply Chain Disruptions and Energy Price Surge (2020-2022)