Which of These Is an Advantage of Long-Term Contracts in Resource

question 36

Multiple Choice

Which of these is an advantage of long-term contracts in resource markets?

• A)Long-term contracts decrease the duration of recessionary gaps.
• B)Long-term contracts reduce unemployment below its natural rate.
• C)Long-term contracts help avoid recession in an economy.
• D)Long-term contracts increase the flexibility of nominal wages.
• E)Long-term contracts reduce the average cost of negotiation.

---

Definitions:

Memory

The mental ability that allows for the keeping, maintaining, and recovering of information throughout time.

Effortful Processing

Encoding that requires attention and conscious effort.

Long-Term Retention

Long-term retention is the continued storage of information over an extended period, allowing it to be recalled later.

Testing Effect

The phenomenon that long-term memory is increased when some of the learning period is devoted to retrieving the to-be-remembered information through testing with proper feedback.