The condition for the equilibrium level of efficiency wage is that:
A) The job vacancy rate is equal to the unemployment rate.
B) The efficiency of the labour force is maximized.
C) The rate of change in the aggregate wage is stabilized when the actual rate of unemployment is equal to the natural rate.
D) The elasticity of the workers' output with respect to the wage is equal to one.
E) The marginal benefit of job search is equal to the marginal cost of job search.
Correct Answer:
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