If a union raises the wage in its industry above equilibrium,then there is an increase in

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When a union raises the wage in its industry above equilibrium, it leads to structural unemployment (unemployment caused by a mismatch between the skills of workers and the requirements of the available jobs). This unemployment is part of the natural rate of unemployment, which is the unemployment rate that exists when the economy is at full employment and there is no cyclical unemployment (unemployment caused by changes in the business cycle). Frictional unemployment, on the other hand, is caused by the time it takes for workers to find suitable jobs and is also part of the natural rate of unemployment.

If a Union Raises the Wage in Its Industry Above