A reduction in output and the demand for labour will eventually cause unemployment to __________ and the growth of wage rates to __________.
A) decrease, increase
B) decrease, decrease
C) increase, decrease
D) increase, increase
Correct Answer:
Verified
Q30: Wage rates do not respond quickly because:
A)
Q31: When aggregate demand falls and output falls:
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
Q36: The persistence of inflation in times of
Q37: Firms are reluctant to make frequent changes
Q38: Real-world firms often meet workers' demands for
Q39: The Phillips curve shows that the rate
Q40: Suppose that businesses and labour anticipate the
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