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In the Efficiency Wage Model with the Efficiency Wage Above

Question 7

Multiple Choice

In the efficiency wage model with the efficiency wage above the market-clearing wage,when employment is at its full-employment level


A) labor supply equals labor demand.
B) there is an excess supply of labor.
C) there is an excess demand for labor.
D) there could be either an excess demand for, or an excess supply of, labor.

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