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Firms don't just try to pay as little as possible to get the needed bodies on board; when there is unemployment, they ask themselves how wage cuts would affect the behavior of the employees. Would they quit or feel dissatisfied and work less hard on the firm's behalf if they feel that wage policies are unfair?

Janet Yellen

Biography

Author Profession: Public Servant
Nationality: American
Born: August 13, 1946

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