Wages in excess of their equilibrium level help explain
A)structural unemployment but not the natural rate of unemployment.
B)the natural rate of unemployment but not structural unemployment.
C)both structural unemployment and the natural rate of unemployment.
D)neither structural unemployment nor the natural rate of unemployment.

Question

Quizplus · Accepted Answer

Wages above equilibrium can lead to structural unemployment as they create a surplus of labor (more people willing to work than jobs available). This situation contributes to the natural rate of unemployment, which includes structural unemployment.

Wages in Excess of Their Equilibrium Level Help Explain