Distinguishing Movements from Shifts in the Wage-Setting Relationship
An economist observes that in the rapidly growing technology sector, firms are offering higher wages to attract and motivate a limited pool of skilled workers. A colleague argues that this trend, isolated to a single sector, does not necessarily mean the entire economy's wage-setting curve has shifted upwards. Explain the logic behind the colleague's argument. In your explanation, clarify the difference between a movement along the economy-wide wage-setting curve and a shift of the entire curve.
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Introduction to Macroeconomics Course
Ch.1 The supply side of the macroeconomy: Unemployment and real wages - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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Analysis in Bloom's Taxonomy
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