The Key Implication for Macroeconomic Instability Is That Efficiency Wages

question 61

Multiple Choice

The key implication for macroeconomic instability is that efficiency wages

• A) contribute to the downward inflexibility of wages.
• B) help reduce the downward inflexibility of wages.
• C) increase the velocity of money.
• D) reduce the velocity of money.

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Definitions:

Binge-Purge Syndrome

An eating disorder characterized by episodes of excessive eating followed by forced vomiting or other methods to avoid gaining weight.

Bulimia Nervosa

An eating disorder marked by cycles of overeating followed by purging, to prevent weight gain.

Vomiting

The forcible voluntary or involuntary emptying ("throwing up") of stomach contents through the mouth.

Laxatives

Substances taken to stimulate bowel movements and alleviate constipation.