One Determinant of the Long-Run Average Unemployment Rate Is the

question 125

Multiple Choice

One determinant of the long-run average unemployment rate is the

• A)market power of unions, while the inflation rate depends primarily upon government spending.
• B)minimum wage, while the inflation rate depends primarily upon the money supply growth rate.
• C)rate of growth of the money supply, while the inflation rate depends primarily upon the market power of unions.
• D)existence of efficiency wages, while the inflation rate depends primarily upon the extent to which firms are competitive.

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Definitions:

Geographic-Based Pay

A compensation strategy that adjusts an employee's pay based on the cost of living and market wage rates in the geographic location where they work.

Market Pricing

The process of determining the external value of jobs within an organization by comparing the organization's jobs to similar jobs in the external labor market.

Small Firms

Businesses or enterprises with a small number of employees, potentially offering more personalized services and having less market influence than larger companies.

Performance Pay

A compensation strategy that ties employee payment directly to their performance outcomes or achievements.