If a union negotiates a wage above the equilibrium wage in an industry, then the resultant unemployment is called _____ unemployment.
A) classical
B) structural
C) cyclical
D) frictional

Name: If a union negotiates a wage above the equilibrium wage in an industry, then the resultant unemployment is called _____ unemployment. A) classical B) structural C) cyclical D) frictional
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Question

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Classical unemployment occurs when wages are set above the equilibrium level, leading to a surplus of labor, or unemployment.

If a Union Negotiates a Wage Above the Equilibrium Wage