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A powerful manufacturing union successfully negotiates a 10% increase in the nominal wage for its members. Assuming the firm's primary goal is to maintain its profit margin and there is no change in worker productivity, which of the following outcomes is the most likely consequence of this wage increase?
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A powerful manufacturing union successfully negotiates a 10% increase in the nominal wage for its members. Assuming the firm's primary goal is to maintain its profit margin and there is no change in worker productivity, which of the following outcomes is the most likely consequence of this wage increase?
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