If the Efficiency Wage Theory Holds

question 109

Multiple Choice

If the efficiency wage theory holds,

• A) wage rigidity that perpetuates a recessionary gap is transformed from a temporary phenomenon to a permanent feature.
• B) self-correction will automatically eliminate a recessionary gap.
• C) increases in real wages will be required to eliminate a recessionary gap.
• D) increases in nominal wages will be required to close a recessionary gap.

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Definitions:

Chordate Evolution

The study of how chordates, a vast group of animals that includes vertebrates, have evolved over time.

Absolute Dating

A method of determining the age of an object or material, often by measuring the decay of radioisotopes.

Radioisotopes

Isotopes of elements that are radioactive, undergoing decay and emitting radiation in the process.

Fossil

Any past evidence of an organism that has been preserved in the Earth’s crust.