Employers often end up laying off more workers during a recession because of ________.
A) flexible wages
B) downward rigidity of wages
C) higher corporate taxes
D) a tight monetary policy

Question

Quizplus · Accepted Answer

During a recession, employers may find it difficult to lower wages for their existing employees due to downward rigidity of wages. This can lead to layoffs as a way to cut costs and maintain profitability. A, C, and D do not directly relate to the decision to lay off workers during a recession.

Employers Often End Up Laying Off More Workers During a Recession