Predicted Rise in Unemployment from Declining Competition
According to the WS-PS model, a decrease in the level of competition among firms, when considered as a standalone factor, causes the price-setting (PS) curve to shift downward. This shift results in a new equilibrium prediction (represented by point B in Figure 2.24) characterized by a higher level of structural unemployment.
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Ch.2 Unemployment, wages, and inequality: Supply-side policies and institutions - The Economy 2.0 Macroeconomics @ CORE Econ
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Predicted Rise in Unemployment from Declining Competition
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