When the economy enters into a recession,your employer is ________ to reduce your wages because ________.
A)unlikely; output and input prices generally fall during recession
B)unlikely; lower wages reduce productivity and morale
C)likely; output prices always fall during recession
D)likely; aggregate demand is vertical in the long run

Question

Quizplus · Accepted Answer

Lower wages can negatively impact productivity and morale among employees, which is why employers might be hesitant to reduce wages even during a recession.

When the Economy Enters into a Recession,your Employer Is ________