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

Question

Quizplus · Accepted Answer

When unemployment is high, there is a surplus of workers seeking employment, which gives employers an advantage in bargaining over wages because they have many applicants to choose from, reducing the need to offer higher wages to attract or retain employees.

When Unemployment Is High