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.

Question

Quizplus · Accepted Answer

An increase in unionization typically leads to less wage flexibility because unions often negotiate for fixed wages and benefits. This reduced flexibility can lead to an increase in the Non-Accelerating Inflation Rate of Unemployment (NAIRU) as it becomes harder for wages to adjust to economic conditions, potentially leading to higher unemployment.

If There Were an Increase in the Share of the Labour