(Consider This) If wages were more downwardly ﬂexible, then we would expect
A) fewer layoffs during recessions.
B) more layoffs during recessions.
C) more severe recessions.
D) no business cycle ﬂuctuations.

Question

Quizplus · Accepted Answer

If wages were more downwardly flexible, employers could reduce wages instead of laying off workers during economic downturns, potentially leading to fewer layoffs during recessions.

(Consider This) If Wages Were More Downwardly ﬂExible, Then We