You Have Been Asked by the CEO to Advise on How

question 12

Multiple Choice

You have been asked by the CEO to advise on how to reduce the workforce by 10% over the next 2 years.There is little in the budget for payment of up-front money.Which of the following would you not recommend?

• A)work sharing
• B)layoffs based on reverse seniority
• C)buyouts and early retirement packages
• D)reduced work weeks
• E)job sharing

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Definitions:

Inflation

A measure of the rate at which the general level of prices for goods and services is rising, leading to a decrease in the purchasing power of money.

Keynes

Refers to John Maynard Keynes, a British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or piecework basis.

Recession

A period of temporary economic decline during which trade and industrial activity are reduced, typically identified by a fall in GDP in two successive quarters.