Strike Action

Question 1

State + explain the micro effects of strike action.

Answer 1

• Wages: increase if successful.
• Non-Wage Benefits: fighting for tighter hiring + firing regulations, maternity / paternity, pension plans, etc.
• Lower Revenue / Profits For Firms: lost output, lost productivity - harms via lost revenue - as sales take hit - lower profits for firms.

Question 2

State + explain the macro effects of strike action.

Answer 2

• Growth + Living Standards: if key public services aren’t functioning properly, consumer s+ producers can’t access key goods.
• Gov Finances
• Inflation: pass on higher C via higher P.