Imagine an economy experiences two simultaneous changes: a significant decline in the collective bargaining power of its workforce and a substantial increase in the market power of its largest firms. What is the most plausible combined effect on the economy's real wage level and unemployment rate?
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Imagine an economy experiences two simultaneous changes: a significant decline in the collective bargaining power of its workforce and a substantial increase in the market power of its largest firms. What is the most plausible combined effect on the economy's real wage level and unemployment rate?
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