Below equilibrium and unemployment is lower than

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below equilibrium, and unemployment is lower than otherwise. Feedback: Incorrect. Efficiency wages are above equilibrium wages intended to raise productivity and profits, but they also raise unemployment.
Unemployment generated by the existence of labor unions is frictional unemployment and so contributes to the natural rate of unemployment.
Claire manages a health clinic. Once receptionists, patient-care representatives, and record keepers are trained they often leave to find other work. Claire considers paying a higher wage hoping workers will stay on the job longer. According to the theory of
tend to stay on the job longer but profits will fall. Feedback: Incorrect. Paying above equilibrium wags reduces turnover. With less turnover the firm spends less on hiring and training so its profits rise. Tom has no job but keeps applying for one at a business that is unionized. He is qualified and he finds the pay attractive, but the firm always has many applicants. Tom is

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