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Which of the Following Causes of Unemployment Is Associated with a Wage

question 21

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Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?


Definitions:

Consumer

An individual or group that purchases goods or services for personal use, not for manufacture or resale.

Income

Money received, typically on a regular basis, for work or through investments.

Marginal Rate

A term that may refer to the rate at which one variable changes as another variable changes marginally, often used in the context of taxes, substitution, or transformation.

Substitution

The act of replacing one good or service with another in response to shifts in relative prices or changes in consumer preferences.

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