Which form of unemployment arises when wages are maintained above the market-clearing equilibrium level?

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Explanation

Structural unemployment occurs when wages are kept higher than the competitive equilibrium wage, causing a mismatch between labor supply and demand. This differs from cyclical unemployment, which is tied to economic cycles, frictional unemployment, which stems from job searching, and sectoral unemployment, which relates to particular sectors.

Which form of unemployment arises when wages are mai… — Labour Market | PakQuizHub