Figure 20-4
-In Figure 20-4, which panel depicts a union suffering unemployment during a recession rather than allowing the wage to fall?
A)1
B)2
C)3

Question

Figure 20-4 
-In Figure 20-4, which panel depicts a union suffering unemployment during a recession rather than allowing the wage to fall?
A)1 
B)2 
C)3

Quizplus · Accepted Answer

Panel 2 shows a decrease in employment (represented by the gap between the labor supply and labor demand curves) and no change in the wage rate. This implies a union refusing to lower wages during a recession, resulting in increased unemployment.

Figure 20-4 -In Figure 20-4, Which Panel Depicts a Union Suffering Unemployment