If major labour unions succeed increasing wages across the economy?
If major labour unions succeed increasing wages across the economy, the AS curve will shift
a)downward( to the right) and then return immediately to its original position.
b)upward(to the left) and then return immediately to its original position.
c)upward(to the left), increasing the price level.
d)downward(to the right),reducing the price level.
e)non of the above--there will no effect on the AS curve.
- LouiKungLv 51 decade agoFavorite Answer
If you try to express yourself more clearly and more specifically, you should have plotted a curve. The labor movement in Hong Kong is just limited under a fascist system by the incumbent dictator, Donald Tsang Yum-kuen. However, the unions are so powerful in the North America, UK, Germany, and France. They are kept on demanding higher wages with frequent strike and classified as the militant union movement. For instance, GM union auto workers are making an average of US $75 per hour ti cover their basic union rate, health insurance and sick leaves, and liberal pension plan. Many seniors and I say US auto workers are too much overpaid in comparison to China, Japan, UK and probably the high pay auto workers in Germany.
In contrary, Hong Kong union workers in the private sector are fewer overpaid (civic union pay by the taxed dollars) and mostly are underpaid. So, Hong Kong union wages are acceptable. There's no minimum wage law in Hong Kong yet. It is proposed the minimum wage is HK $33/hr (US $1 exchanges HK $7.8) and not approve by the fascist government yet. Many Macjobs in HK are paying under HK $20 per hour.
I think be practical is far better than the plotted curve. Wages should be administrated by the standard of the local living standard, the nature of work in terms of needed skill, years of education and training to qualify the classified union job, steady or seasonal job, and the risky level of the job.