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Which Statement by an Employer Is Consistent with the Market-Clearing

Question 28

Multiple Choice

Which statement by an employer is consistent with the market-clearing theory of unemployment?


A) "I pay more than the going rate so I can hire good workers."
B) "I pay only enough to attract workers who are at the bottom of the pay scale."
C) "I love it when inflation goes up because that drives down my wage costs."
D) "Workers can always find jobs,if only they lower their expectations."
E) "Unions have only their current members' interests at heart."

Correct Answer:

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