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