When the economy enters a recession,your employer is unlikely to reduce your wages because ________ during a recession.
A)output and input prices generally fall
B)lower wages reduce productivity and morale
C)output prices always fall
D)output prices generally fall and input prices generally rise

Question

Quizplus · Accepted Answer

During a recession, both input and output prices generally fall. As a result, employers often don't need to reduce employee wages because the cost of production decreases, allowing them to maintain profitability without cutting labor costs.

When the Economy Enters a Recession,your Employer Is Unlikely to Reduce