Wage Contracts Are Often Set for Periods of Up to Three

question 54

Multiple Choice

Wage contracts are often set for periods of up to three years. As a result, fluctuations in aggregate demand and aggregate supply tend to

• A)cause changes in the amount of involuntary unemployment.
• B)either increase or decrease the NAIRU.
• C)clear the labour market.
• D)have no effect in labour markets until wages are renegotiated.
• E)cause greater inflexibility of wages.

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Definitions:

Population Dispersion

The pattern of spacing among individuals within a geographic area, which can be uniform, random, or clumped.

Whooping Crane

A large North American bird species, noted for its white plumage and loud, whooping calls, currently endangered.

Emigration

The act of leaving one's own country to settle permanently in another, moving abroad.

Cyclic

Referring to occurrences or processes that exhibit a series of repeated events or stages which happen in a predictable sequence.