Wage Rigidity and Unemployment

Workers are more likely to actively search for jobs

Firms are incentivized to hire more workers

Labor demand exceeds labor supply

The quantity of labor supplied exceeds the quantity demanded (correct)

there is a mismatch between labor supply and demand (correct)

workers are actively searching for better jobs

the minimum wage is set too low

firms have a surplus of labor

Raise wages to attract more workers

Lower wages to reduce labor costs (correct)

Increase the number of jobs available

Maintain the current wage level

<p>Labor market equilibrium</p> Signup and view all the answers

<p>Reduced structural unemployment</p> Signup and view all the answers

<p>Structural unemployment</p> Signup and view all the answers