The Experience of Many Economies Suggests That

question 74

Multiple Choice

The experience of many economies suggests that

• A)upward pressures on wages are largely ineffective in booms.
• B)downward pressure on wages during slumps is not as intense as upward pressure on wages during booms.
• C)slumps and booms are not common; the economy is usually in equilibrium at potential output.
• D)unit labour costs fall quickly during booms.
• E)downward pressure on wages during slumps results in sharply increased labour costs.