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Discuss the advantages and disadvantages of rigidity of wages in the labour market. To what extent is the efficiency wage model beneficial to both employers and workers? 


Level 6 Macroeconomics principles Discuss the advantages and disadvantages of rigidity of wages in the labour market. To what extent is the efficiency wage model beneficial to both employers and workers? Explain how unemployment might diverge from its natural level because workers inaccurately perceive the price level (the worker “fooling” model). How satisfactory is this […]

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