A potential cause of stagflation is:

Employers often end up laying off more workers during a recession due to ________

A) higher corporate taxes B) flexible wages C) tight monetary policy D) downwardly rigid wages

To help unscramble cause and effect, economists

A) use the concept of opportunity costs. B) must use the ceteris paribus assumption. C) answer the "what" question. D) answer the "how" question. E) must use normative statements.