If Most of the Shocks That Buffet the Economy Come

question 39

Multiple Choice

If most of the shocks that buffet the economy come from the output market shocks, then

• A) fixed exchange rates are better than flexible exchange rates.
• B) flexible exchange rates are better than fixed exchange rates.
• C) which system is chosen is not important.
• D) fixed exchange rates are better than flexible exchange rates only in the short run.
• E) flexible exchange rates are better than fixed exchange rates only in the short-run.

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Definitions:

Compensation Costs

The total of an employer's expenses for employee salaries, wages, benefits, and other forms of compensation.

Competency-Based Pay System

A salary structure that compensates employees based on the specific skills, knowledge, and abilities they bring to their roles, rather than their job title or position.

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons including illness, personal issues, or disengagement with work.

Strategic Compensation

A compensation strategy designed to align with and support the organization's broader goals, objectives, and competitive position.