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Wednesday, March 30, 2016

The Economic Effects of Labor Unions Revisited

 March 30, 2016     No comments   

The Economic Effects of Labor Unions Revisited


In the article entitled "The Economic Effects of Labor Unions Revisited," Vedder and Galloway attempt to prove statistically, using historical data, that labor unions do not have a good effect on the economy. Read the article, and explain the following microeconomic concepts that the authors discuss and how they are related to unions:

•         Demand, supply, and equilibrium wage rates of labor

•         Unemployment

•         Real GDP and economic growth

•         Income per capita

•         Population growth and aging

•         The article focuses on harmful economic effects, but also mentions some positive aspects. What are they?

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