If there were an increase in the share of the labour force that is unionized,it would likely lead to ________ wage flexibility,which would ________ the NAIRU.

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An increase in the share of the labor force that is unionized typically leads to less wage flexibility, as unions often negotiate set wages and contracts that are less responsive to changes in the labor market. This decreased flexibility can increase the Non-Accelerating Inflation Rate of Unemployment (NAIRU), as it becomes harder to adjust wages downward in response to unemployment, potentially leading to higher unemployment rates at which inflation does not accelerate.

If There Were an Increase in the Share of the Labour