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  • The Upward-Sloping Economy-Wide Wage-Setting (WS) Curve

Graphical Example of the Wage-Setting Curve

A graph illustrating the wage-setting relationship plots employment (N) on the horizontal axis and the real wage (w) on the vertical axis, which may also show productivity (lambda). The wage-setting curve itself is upward-sloping. This graph can also include vertical lines to represent the total labor force (e.g., at 80% employment) and the working-age population (e.g., at 90% employment). A specific point on the curve, such as Point A at (64%, w_A), represents the real wage (w_A) required to sustain an employment level of 64%.

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References

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Economics

Economy

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

CORE Econ

Social Science

Empirical Science

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