Assume that there is a recession. The demand for new homes and other buildings decreases. As it does, the demand to hire construction workers also decreases. However, because construction workers have a strong labor union, the wages of construction workers will not fall (a price floor). Discuss what will result for construction workers during the recession.

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In a scenario where there is a recession leading to a decrease in demand for new homes and buildings the construction industry is likely to be signifi... View the full answer