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Real business cycle theory explains fluctuations in output through:
Pay Structure
The organization of different levels of pay for different jobs within a company, reflecting factors such as skill, seniority, and performance.
Pay Scale Overlaps
Refers to situations where the salary ranges for different positions within an organization overlap, allowing for potential discrepancies in pay for roles of differing responsibilities.
Maximum Pay
The highest amount of money an organization is willing to pay for a particular job position.
Job Evaluation System
A framework used by organizations to assess and compare the responsibilities and value of jobs to ensure fair and equitable compensation.
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