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    Macroeconomics Study Set 39
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    Exam 7: Unemployment and the Labor Market
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    Explain How Paying Efficiency Wages Can Help Employers Overcome Both
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Explain How Paying Efficiency Wages Can Help Employers Overcome Both

Question 109

Question 109

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Explain how paying efficiency wages can help employers overcome both moral hazard and adverse selection problems in employment.

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Efficiency wages are wages above the mar...

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