If unions raise wages above their market clearing level,then
A) more workers will be able to get better jobs, increasing employment.
B) there will be a shortage of workers.
C) persistently high rates of unemployment will result.
D) this will be Pareto efficient.

Question

Quizplus · Accepted Answer

Raising wages above the market clearing level can lead to a surplus of workers (more people wanting to work at the higher wage than there are jobs available), leading to persistently high rates of unemployment.

If Unions Raise Wages Above Their Market Clearing Level,then