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Answer to Question #109302 in Macroeconomics for Esmat Asem

Question #109302
How does the 'efficiency wage' prevent the economy from achieving full-employment?
1
Expert's answer
2020-04-13T09:40:57-0400

Efficiency wage prevent the economy from achieving full-employment in that workers are paid more than the equilibrium wage. There maybe unemployment as the above market wage rates will attract more workers.


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