When aggregate demand declines, many firms may reduce employment rather than wages because wage reductions may:
A. reduce per-unit production costs.
B. reduce worker morale and work effort, and thus lower productivity.
C. increase the firms' cost of raising financial capital.
D. reduce the demands for their products.
B. reduce worker morale and work effort, and thus lower productivity.
Economics
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Through their marketing and advertising efforts, companies try to:
A. increase the elasticity of their demands. B. increase price more than quantity sold. C. augment the impact of the snob effect. D. minimize the impact of the snob effect.
Economics
Aggregate demand will be affected by the purchasing power of money
Indicate whether the statement is true or false
Economics