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Why Are Firms Usually Unwilling to Lower Nominal Wages

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Why are firms usually unwilling to lower nominal wages?


Definitions:

Ordinary Debts

Financial obligations or liabilities that arise in the course of normal business operations, excluding special or secured debts.

Legal Position

An individual's or entity's status or stance on a particular legal issue, based on rights, duties, and liabilities under the law.

Employer

An individual or organization that hires and pays people to work for them.

Entire Stock

The complete inventory of goods and products that a business has available for sale at any given time.

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