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Efficiency Wage
A wage set above the market equilibrium to increase productivity by encouraging higher effort or reducing turnover among employees.
Positive Amount of Unemployment
A situation where there is a nonzero level of unemployment in the economy, often considered normal due to frictions and transitions in the job market.
Market-clearing Wage
The wage rate at which the quantity of labor supplied equals the quantity of labor demanded.
Market-clearing Wage
The wage rate at which the quantity of labor supplied is equal to the quantity of labor demanded.
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