Firms are reluctant to make frequent changes in wage rates because fair and stable wage rates seem to:
A) minimize short-run costs.
B) maximize short-run profits.
C) increase worker productivity.
D) increase worker rivalry.
Correct Answer:
Verified
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
Q35: A reduction in output and the demand
Q36: The persistence of inflation in times of
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
Q41: The Phillips curve suggests that:
A) a trade-off
Q42: The long-run Phillips curve will be vertical
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