Which of these is an advantage of long-term contracts in resource markets?
a. Long-term contracts decrease the duration of recessionary gaps.
b. Long-term contracts reduce unemployment below its natural rate.
c. Long-term contracts help avoid recession in an economy
d. Long-term contracts increase the flexibility of nominal wages.
e. Long-term contracts reduce the average cost of negotiation.
e
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What factors of production can a firm change in the short run? In the long run?
What will be an ideal response?
A copyright for works created by corporations run for ________ years from first publication or ________ years from the creation, whichever is ________.
A) 70; 120; shorter B) 95; 70; longer C) 95; 120; longer D) 95; 120; shorter
According to the figure, The Rock Shop:
This figure displays the choices and payoffs (company profits) of two music shops-MiiTunes and The Rock Shop. MiiTunes is an established business in the area deciding whether to charge its usual high prices or to charge very low prices, in the hopes that a new business will not be able to make a profit at such low prices. The Rock Shop is trying to decide whether or not it should enter the market and compete with MiiTunes.
A. should enter the market, regardless of what MiiTunes chooses to do.
B. should not enter the market, regardless of what MiiTunes chooses to do.
C. does not have a dominant strategy.
D. has more than one dominant strategy.
What is meant by an asset bubble?