A decrease in the share of the labour force that is unionized may ________ the degree of wage flexibility,which would put ________ pressure on NAIRU.

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A decrease in the share of the labor force that is unionized typically increases wage flexibility because non-unionized workers may have less power to negotiate wages, leading to more variability in wages in response to market conditions. This increased flexibility can put downward pressure on the Non-Accelerating Inflation Rate of Unemployment (NAIRU), as wages can adjust more easily to changes in the labor market, potentially reducing unemployment without causing inflation to accelerate.

A Decrease in the Share of the Labour Force That