单词 | classical unemployment |
释义 | classical unemployment Unemployment caused by wages being too high relative to productivity, so that the firms in an economy cannot profitably employ all the labour on offer at these real wages. This type of unemployment can be reduced by a fall in wage costs relative to producer prices. This could be achieved in several ways: lower wages; a lower tax wedge between what the employer pays and what the employee gets after tax; or improved productivity through better equipment, better education and training, the reform of restrictive working practices, or improved management. |
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