Which statement by an employer is consistent with the New Classical theory of unemployment?
A) "I pay only enough to attract workers who are at the bottom of the pay scale."
B) "Workers can always find jobs, if only they lower their expectations."
C) "I pay more than the going rate so I can hire good workers."
D) "I love it when inflation goes up because that drives down my wage costs."
E) "Unions have only their current members' interests at heart."
Correct Answer:
Verified
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