In an economy where the aggregate real wage is determined as a constant share of the output per worker, imagine the government enacts new policies that significantly increase the level of competition among firms. Assuming the output per worker remains unchanged, what is the most likely impact on the aggregate real wage?
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In an economy where the aggregate real wage is determined as a constant share of the output per worker, imagine the government enacts new policies that significantly increase the level of competition among firms. Assuming the output per worker remains unchanged, what is the most likely impact on the aggregate real wage?
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