According to the theory of efficiency wages, firms operate less efficiently if wages are above the equilibrium level.
Correct Answer:
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Q2: The official unemployment rate is calculated as:
A)the
Q3: Cyclical unemployment arises when the economy is
Q4: The natural rate of unemployment is:
A)unchanging
B)inevitable
C)always increasing
D)affected
Q5: Economists and policymakers should focus on solving
Q6: An economy's natural rate of unemployment refers
Q8: Which of the following is the correct
Q9: Cyclical unemployment refers to:
A)year-to-year fluctuations of unemployment
Q10: Efficiency wages are:
A)one explanation for the natural
Q11: Firms may find it profitable to pay
Q12: Frictional unemployment may be economically beneficial if
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