Keynesians explain the procyclical behaviour of average labour productivity by introducing the concept of
A)menu costs.
B)sticky prices.
C)sticky wages.
D)labour hoarding.

Question

Quizplus · Accepted Answer

Labour hoarding refers to the practice of firms retaining more workers than needed during downturns, which can lead to procyclical productivity as output fluctuates more than employment.

Keynesians Explain the Procyclical Behaviour of Average Labour Productivity by Introducing