Paying efficiency wages above the equilibrium wage rate

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Reference no: EM131090438

For each of the following situations, would the unemployment rate increase, decrease, or stay the same?

a. A company begins paying efficiency wages above the equilibrium wage rate.

The unemployment rate would.

b. The number of workers covered by union contracts falls.

The unemployment rate would.

c. The government extends the duration of unemployment insurance.

The unemployment rate would.

Reference no: EM131090438

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