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Question: From the end of World War II through the late 1980s, wage and price gains in the US always accelerated when the economy reached full employment. However, that did not happen in the 1990s. Part of the reason wage gains did not rise was credible monetary policy, part was the benign supply shock from a stronger dollar and lower oil prices, and part was the reduction in labor market imperfections. Explain how each of the following factors kept wage gains from accelerating.
(A) Demise of the efficiency wage.
(B) Reduced power of unions.
(C) Less government regulations.
(D) Clinton's plan to ‘‘end welfare as we know it.''
use the following data to calculate a the labor force participation rate b the unemployment rate and c the
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