Effect of Low Labor Market Competition on the Price-Setting Curve
If firms face little competition from other employers in the labor market, they can offer lower nominal wages to their workers. This results in a lower real wage and a smaller share of output per worker for employees, which is represented by a lower position of the price-setting (PS) 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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Learn After
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