When aggregate demand falls and output falls:
A) employers reduce the wage rates they pay their employees.
B) employers reduce their labour inputs by reducing hours of work and numbers of employees.
C) employers increase the overtime work available to their employees.
D) labour contracts prevent changes in either wage rates or employment.
Correct Answer:
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Q26: When the economy is in long-run equilibrium
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Q28: Consider a given AD curve with a
Q29: Slow wage rate adjustments:
A) increase the time
Q30: Wage rates do not respond quickly because:
A)
Q32: Recessionary gaps result in:
A) higher wage rate
Q33: Inflationary gaps result in:
A) higher wage rate
Q34: Differences in countries' adjustments to output gaps
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