Long- Term Labour Contracts Are an Important Feature of _

question 8

Multiple Choice

Long- term labour contracts are an important feature of _ _ macroeconomic theories. In contrast to a world with continuous bargaining of wages and employment, the existence of such contracts leads to a labour market in which involuntary unemployment is .

• A)New Keynesian; impossible
• B)New Classical; always present
• C)New Classical; impossible
• D)New Classical; possible
• E)New Keynesian; possible

---

Definitions:

Fiedler's Model

A theory proposed by Fred Fiedler that suggests leadership effectiveness is contingent on both the leader's style of interacting with the group and the favorability of the leadership situation.

Contingency Theories

Management theories suggesting that optimal decisions or leadership styles depend on the specific situation and variables involved.

Lewin/Lippitt/White Study

A series of experiments by Kurt Lewin, Ronald Lippitt, and Ralph White that explored the effects of different leadership styles on group behavior.

Leader-Member Exchange Theory

A theory that explores how leader-member relationships develop over time into a system of in-group and out-group members, influencing organizational dynamics and individual outcomes.