If the wage is kept above the equilibrium wage for any reason,the result is
A)cyclical unemployment.
B)frictional unemployment.
C)seasonal unemployment.
D)structural unemployment.

Question

Quizplus · Accepted Answer

Keeping the wage above the equilibrium wage leads to structural unemployment. This is because employers will demand fewer workers than the number of workers who are willing to work at that higher wage, resulting in a surplus of labor or unemployment. This type of unemployment is known as structural unemployment because it arises from a fundamental mismatch between the skills and qualifications of workers and the demand for them in the labor market.

If the Wage Is Kept Above the Equilibrium Wage for Any