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An economy has a persistent problem where many people are out of work despite having relevant skills, and firms report that high labor costs prevent them from expanding their workforce. The government introduces a new policy. After the policy is implemented, observers note that more of these skilled but previously jobless individuals are now employed, and the average take-home pay for all workers has risen. Which of the following statements provides the most accurate economic analysis of how the new policy likely achieved these two outcomes?
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