Some Economists Believe That When Workers and Firms Expect a Contractionary

question 33

Multiple Choice

Some economists believe that when workers and firms expect a contractionary monetary policy, _____

• A) they try to prevent the price level from increasing.
• B) their actions lead to a further increase in output.
• C) they are likely to negotiate for relatively lower wages.
• D) the monetary authority is forced to cancel its planned recessionary policy.
• E) both output and employment increase even more than was originally planned.

---

Definitions:

Organization

An entity comprising multiple people, such as a company, institution, or association, structured to achieve specific goals or perform tasks.

Work Underload

A situation in which an employee has too few tasks or not enough work to fill their time, potentially leading to boredom and disengagement.

Micromanagement

Micromanagement is a management style characterized by excessive control or attention to details, often resulting in a lack of autonomy for subordinates.

Interpersonal Relations

The connections and interactions between two or more people, often analyzed in a social or work context.