Unemployment and inequality both decrease.

The WS curve shifts upwards.

The wage share of total production increases, thus decreasing inequality because workers not get a higher share of total production and owners get a lower share.

There is a higher average product of labor in the new equilibrium.

Unemployment rate is positively correlated with the share of employees covered by collective bargaining.

Even though the bargained wage effect should shift the WS curve downward and cause lower unemployment in countries with more union power, the data to do not show this relationship.

Unemployment rate is uncorrelated with the share of employees covered by collective bargaining.

The long-run impact is lower structural unemployment and an unchanged wage for the employed: There is a new Nash equilibrium at point E.

In the short run, the wage-setting curve shitfs upwards and all employed workers receive a higher wage (point C). 

In the short run, the wage-setting curve shitfs downwards and all employed workers receive a higher wage (point C). 

An organization that represents the interests of workers in negotiations with employers over pay, working conditions, and hours.

A government agency responsible for setting minimum wage laws and workplace regulations.

A labor union is a philanthropic organization that focuses on charitable outreach, job-placement services, and vocational training programs for the unemployed, with limited involvement in direct negotiations with employers.

A labor union is a private investment consortium that manages retirement funds and directs corporate policy by leveraging shareholder influence in large firms.