Related to the Economics in Practice on p. 128: Compared to students who graduate college and obtain employment during an economic expansion, students who graduate during a recession often find that starting wages are ________ and wage growth is ________.
A) lower; slower
B) lower; faster
C) higher; slower
D) higher; faster

Question

Quizplus · Accepted Answer

During a recession, job opportunities are scarce, so employers have a larger pool of candidates to select from, which drives down starting wages. Additionally, wage growth is slower during economic downturns as companies are less likely to give pay raises when they are struggling financially. Therefore, students who graduate during a recession often find that starting wages are lower and wage growth is slower compared to those who graduate during an economic expansion.

Related to the Economics in Practice on P