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According to this approach, movements in employment and unemployment are therefore to be explained in terms of shifts in the underlying frictionless equilibrium.
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For a worker, the opportunity cost of an hour of leisure a. rises by $5 when her wage rises by $5 per hour. b. falls by $5 when her wage rises by $5 per hour.
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Keywords. Labor Market Labor Supply Labor Economic Equilibrium Theory Reservation Wage. These keywords were added by machine and not by the authors.
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