Suppose that air traffic controllers, whose wages have been locked into place by a two-year contract, are laid off during a recession. This example is consistent with the

Question

Quizplus · Accepted Answer

The fact that the air traffic controllers' wages are locked into place by a contract suggests that this is an example of explicit contract explanation of unemployment, which occurs when employers are unable to adjust wages downward during a recession due to contracts with employees.

Suppose That Air Traffic Controllers, Whose Wages Have Been Locked