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Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding o

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Assume that the union wage already exceeds the market-clearing wage. If the union wage is increased, holding other factors constant, then the number unemployed _____ and the number employed _____.

A. increase; increases

B. increases; decreases

C. increases; does not change

D. decreases; decreases

E. decreases; increases

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  1. B, increases, decreases.  Follow the demand curve for labor when the price goes up.

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