Macroeconomic Benefits of Increased Product Market Competition
An increase in product market competition generates broad benefits for the macroeconomy. It tends to reduce the price markups that firms can charge, which contributes to a reduction in economic inequality by increasing the real wage and the overall share of income that goes to labor. Furthermore, greater competition can lead to a decrease in structural unemployment.
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Introduction to Macroeconomics Course
Ch.2 Unemployment, wages, and inequality: Supply-side policies and institutions - The Economy 2.0 Macroeconomics @ CORE Econ
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