Gordon Argues That Individual Workers and Firms Prefer Long-Term Contracts,but

question 11

Multiple Choice

Gordon argues that individual workers and firms prefer long-term contracts,but that such contracts

• A)raise the costs of doing business,a macroeconomic externality.
• B)insure that output alone is adjusted as AD changes and therefore,such contracts impose high costs of output and employment instability on society.
• C)insure that the price level alone is adjusted as AD changes and therefore,such contracts impose high costs of output and employment instability on society.
• D)insure a macroeconomic externality,rigid unemployment.

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Definitions:

Committed Position

A stance or viewpoint one is determined to adhere to, often despite potential opposition.

Concessions

Compromises made by one or more parties in a negotiation, often in the form of giving up something in return for reaching an agreement.

Reciprocating Concessions

A negotiation technique where each party makes concessions to the other, with the expectation of receiving similar concessions in return.

Negotiations

A process in which two or more parties discuss problems or disputes to reach a mutually acceptable agreement.