When the economy is strong,capital-intensive employers do not have the incentive to avoid large wage raise.Why?

Name: When the economy is strong,capital-intensive employers do not have the incentive to avoid large wage raise.Why?
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Question

Quizplus · Accepted Answer

When the economy is strong, capital-intensive employers have higher profits and the ability to share those profits with their employees through wage raises without affecting their bottom line significantly. Therefore, they have less incentive to avoid large wage raises.

When the Economy Is Strong,capital-Intensive Employers Do Not Have the Incentive