Which of the following is not a reason why wages respond slowly to changes in output?
a. Many labor contracts specify wages for up to three years.
b. The process of wage setting in large corporations is slow moving.
c. Frequent wage changes can reduce worker morale and reduce productivity.
d. Firms benefit from having a reputation of paying stable wages.
e. The labor supply and demand curves move rapidly to clear labor markets.
E
You might also like to view...
Where Y is GDP, C is consumption, I is investment, G is government purchases, T is net taxes, and there is no international trade, the government budget deficit equals:
A. Y + T - G. B. T - G. C. Y - G. D. G - T.
In monopolistic competition, in the long run firms have
A) a capacity shortage. B) excess capacity. C) an economic profit. D) an economic loss.
Inflation targeting requires monetary policy makers to rely heavily on the Phillips curve
a. True b. False Indicate whether the statement is true or false
Which of these is not a beneficial supply shock?
What will be an ideal response?