Which of the following statements is true when wages are above the market-clearing wage?
A) The larger the gap between the current market wage and the market-clearing wage, the lesser will be the amount of unemployment.
B) The larger the gap between the current market wage and the market-clearing wage, the greater will be the amount of unemployment.
C) At wage rates above the market-clearing wage rate, there is an excess demand for workers.
D) At wage rates below the market-clearing wage rate, there is an excess supply of workers.
Correct Answer:
Verified
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