The Unemployment Resulting When Real Wages Are Held Above Equilibrium

question 55

Multiple Choice

The unemployment resulting when real wages are held above equilibrium is called ______ unemployment, while the unemployment that occurs as workers search for a job that best suits their skills is called ______ unemployment.

• A) efficiency; inefficiency
• B) efficiency; structural
• C) frictional; efficiency
• D) structural; frictional

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Definitions:

Representativeness Heuristic

A cognitive shortcut that involves making judgments based on how much one thing resembles another.

Creating Subgoals

The strategy of breaking down a goal into smaller, more manageable tasks or objectives that are easier to achieve step by step.

Using Algorithms

The practice of applying a step-by-step procedure or formula for solving problems or performing tasks.

Confirmation Bias

The tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses.