A Logical Explanation for Recessions Might Be That Households Have

question 23

Multiple Choice

A logical explanation for recessions might be that households have suddenly altered their willingness to work.A problem with this explanation is

• A) it is inconsistent with patterns of job searches during recessions
• B) the demand for labor rarely shifts
• C) the large number of women who entered the labor force in the last four decades
• D) it is inconsistent with the classical model
• E) the work ethic that is responsible for the decline in American vacations.

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Definitions:

Labor Union Membership

The number of workers enrolled in labor unions, organizations that advocate for their interests.

Labor Force

The labor force comprises all the working-age people in an economy who are either employed or actively looking for work.

Monopsony

A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices and terms of sale.

Collective Bargaining

The process by which employers and a group of employees negotiate wages, working conditions, and other employment terms.