A Look at Macroeconomic Data Across Countries Reveals That When

question 16

Multiple Choice

A look at macroeconomic data across countries reveals that when economies experience recessions, unemployment rates rise, but wages fall very little, if at all.Which of the following is most likely to support the above observation?

• A)Wages are determined by the interaction of the forces of labor demand and supply.
• B)The demand for labor is derived demand and hence does not fall during recessions.
• C)The labor market usually exhibits perfectly competition.
• D)The labor supply curve becomes perfectly inelastic during recessions.
• E)Long term labor contracts make the wage rates sticky downwards.

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Definitions:

Forging Process

A manufacturing technique involving the shaping of metal using localized compressive forces, often hammering or pressing.

Upper Control Limit

The highest value on a control chart that indicates the limit of variation acceptable for a process in statistical quality control.

Compressive Strength

The capacity of a material or structure to withstand loads tending to reduce size, typically measured in pounds per square inch or megapascals.

Injection Molding

A manufacturing process for producing parts by injecting material into a mold, commonly used with plastics but also other materials.