When,because of Hiring and Firing Costs,firms Retain Workers in a Recession

question 83

Multiple Choice

When,because of hiring and firing costs,firms retain workers in a recession that they would otherwise lay off,there is said to be

• A)labour hoarding.
• B)a decline in capacity utilization.
• C)voluntary unemployment.
• D)involuntary unemployment.

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Definitions:

In-kind Transfers

Non-cash assistance provided by governments or organizations, including goods and services, to individuals or other entities.

Food Stamps

A government-provided assistance program designed to help individuals and families with low income purchase food.

Housing Vouchers

A form of government housing assistance that provides financial aid to help low-income families pay for rent in the private market.

Consumption

The use of goods and services by households, one of the primary components of economic activity and growth.