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Figure 42-2
Use the figure to answer the corresponding question(s) .
-Refer to Figure 42-2.The surface labeled 4 is:
Efficiency Wages
Wages set by employers above the market equilibrium to increase productivity and reduce employee turnover.
Natural Rate
Refers often to the natural rate of unemployment where the economy is in equilibrium, or the natural rate of interest that corresponds to the equilibrium in the loanable funds market.
Structural Unemployment
Unemployment that stems from changes in industrial structures, primarily driven by technological progress, rather than by shifts in supply or demand levels.
Frictional Unemployment
Frictional unemployment is a form of temporary unemployment that occurs when workers are transitioning between jobs, often due to personal choices or changing economic conditions.
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