Sectoral Changes in Demand

question 20

Multiple Choice

Sectoral changes in demand

• A)create frictional unemployment,while firms paying wages above equilibrium to attract a better pool of candidates creates structural unemployment.
• B)create structural unemployment,while firms paying wages above equilibrium to attract a better pool of candidates creates frictional unemployment.
• C)and firms paying wages above equilibrium to attract a better pool of candidates both create structural unemployment.
• D)and firms paying wages above equilibrium to attract a better pool of candidates both create frictional unemployment.

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Definitions:

Pay-Related Decisions

Choices made by employers regarding employee compensation, including wages, raises, and bonuses.

Incentive Process

A strategy or system designed to motivate and encourage employees to achieve certain goals or perform at a higher level.

Pay-Related Communications

Information exchanges regarding salary, wages, bonuses, and other financial compensation between employers and employees.