When the economy enters a recession,your employer is unlikely to reduce your wages because ________ during a recession.
A)output and input prices generally fall
B)lower wages increase your incentive to find employment elsewhere.
C)output prices always fall
D)output prices generally fall and input prices generally rise

Question

Quizplus · Accepted Answer

Employers are reluctant to reduce wages during a recession because lower wages may motivate employees to seek better-paying jobs elsewhere, potentially leading to a loss of experienced and skilled workers.

When the Economy Enters a Recession,your Employer Is Unlikely to Reduce