Wages may be inflexible downward during a period of cyclical unemployment because:
A) insiders may fear harassment from outsiders who "stole" their jobs
B) outsiders may fear harassment from insiders and are thus unwilling to work for lower wages
C) firms believe that outsiders will withhold cooperation from insiders who "stole" their jobs
D) both insiders and outsiders will withhold cooperation from management if management reduces wages
Correct Answer:
Verified
Q41: Suppose that a policy response to cyclical
Q42: Crowding out occurs when:
A)unemployment rises as a
Q43: Fiscal policy to combat demand-deficient unemployment is
Q44: Which of the following is not a
Q45: Implicit contracts suggest that:
A)firms may lay off
Q47: _ of the unemployment rate differential between
Q48: Which of the following is a true
Q49: An increase in government demand for output
Q50: The unemployment rate for:
A)blue-collar workers is substantially
Q51: Which one of the following government policies
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