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According to the Relative-Wage Explanation of Unemployment, Workers Will Be

Question 149

Multiple Choice

According to the relative-wage explanation of unemployment, workers will be willing to accept wage cuts only if


A) they know that unemployment is increasing in other industries.
B) they can be convinced that they are overpaid relative to workers doing similar jobs at other firms.
C) they know that workers in other firms and industries are receiving similar cuts.
D) the economy is in a prolonged recession.

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