If, as a result of imperfect information, firms set their wage rates below the market clearing wage rate

Name: If, as a result of imperfect information, firms set their wage rates below the market clearing wage rate
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When firms set their wage rates below the market clearing wage rate due to imperfect information, it results in a shortage of workers. This is because the wage offered is too low to attract the necessary number of workers to fill all available positions, leading to unfilled jobs.

If, as a Result of Imperfect Information, Firms Set Their