Efficiency Wages Are

question 108

Multiple Choice

Efficiency wages are:

• A)wages deliberately set above the market rate in order to increase productivity.
• B)a cause of unemployment.
• C)an incentive for an employee to work hard to keep his job.
• D)All of these are true.

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Definitions:

Recession With Inflation

A situation characterized by rising inflation during a period of economic downturn, leading to high unemployment and stagnant demand.

Short Run

A period in economic analysis where at least one input is fixed and cannot change.

Aggregate Supply

The total supply of goods and services that firms in an economy are willing to produce and sell at a given overall price level, during a certain time period.

Aggregate Demand

Total inclination for products and services within an economic system, priced at a determined aggregate price level over an appointed period.