The phenomenon of sticky wages usually leads to unemployment during a recession.
A)higher
B)lower
C)stabalize
D)none of the above

Question

Quizplus · Accepted Answer

Sticky wages refer to the resistance of wages to decrease even when the economic conditions warrant a reduction. During a recession, when demand for goods and services falls, employers may need to reduce costs. However, if wages do not adjust downward due to their sticky nature, employers may instead reduce the number of employees, leading to higher unemployment.

The Phenomenon of Sticky Wages Usually Leads to Unemployment During