Implicit contracts suggest that:
A) firms may lay off workers in return for granting then an "insurance policy" against wage reductions
B) firms may pay workers a lower wage in return for granting them an "insurance policy" against layoff
C) firms have a higher wage bill in recessions than during periods of economic expansion
D) firms have an incentive to contract with workers to pay them the going market wage
Correct Answer:
Verified
Q40: Which one of the following is a
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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
Q46: Wages may be inflexible downward during a
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
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