When the Economy Enters into a Recession, Your Employer Is

question 112

Multiple Choice

When the economy enters into a recession, your employer is ________ to reduce your wages because ________.

• A)unlikely; output and input prices generally fall during recession
• B)unlikely; lower wages reduce productivity and morale
• C)likely; output prices always fall during recession
• D)likely; aggregate demand is vertical in the long run
• E)likely; labour demand increases during recessions

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Definitions:

Complex Concept

An idea, theory, or principle that is composed of various interconnected parts, making it difficult to comprehend entirely without thorough analysis.

Change Blindness

The phenomenon where a person does not notice new or changed visual stimuli in their environment when the change occurs during a visual interruption.

Dual Processing

The theory that the mind operates on two levels: a fast, automatic, unconscious level, and a slower, more deliberate, conscious level.

Consciousness

The capability to observe and think about one’s own self, emotions, mental processes, immediate environment, and personal experiences.