When unemployment is low,
A) jobs are hard to find.
B) workers compete against many other unemployed workers.
C) employers have an advantage in bargaining over wages.
D) workers have an advantage in bargaining over wages.
E) employers can choose from a large number of applicants for a job.

Question

Quizplus · Accepted Answer

When unemployment is low, there are fewer people available to work and more job openings. This gives workers an advantage in bargaining over wages since employers need to offer competitive wages to attract and retain workers.

When Unemployment Is Low