In the Efficiency Wage Model,if the Real Wage Is Higher

Multiple Choice

In the efficiency wage model,if the real wage is higher than the market-clearing wage so that there is an excess supply of labor

A) firms will hire new workers at lower wages.
B) firms will replace high-paid workers with low-paid, formerly unemployed workers.
C) employers will not hire workers who are willing to work for a lower wage.
D) firms will demand a higher level of effort from existing employees.