There are cyclical and frictional varieties of this concept.
According to the efficiency wage hypothesis, market wages exceeding the equilibrium wage tend to increase this quantity. The natural rate hypothesis claims that there is always a base level for this quantity in the market. Okun's law posits that a one percent increase in this quantity leads to a two percent decrease in GDP. The Phillips Curve demonstrates an inverse relationship between this quantity and inflation. There are cyclical and frictional varieties of this concept. For 10 points, identify this economic concept in which people in the labor force are unable to find jobs.
According to the efficiency wage hypothesis, market wages exceeding the equilibrium wage tend to increase this quantity.
unemployment