The fear of unwanted price wars may explain why many firms are reluctant to:
A. reduce wages when a decline in aggregate demand occurs.
B. reduce prices when a decline in aggregate demand occurs.
C. expand production capacity when an increase in aggregate demand occurs.
D. provide wage increases when labor productivity rises.
B. reduce prices when a decline in aggregate demand occurs.
Economics
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In the above figure, the intersection of curves A and B is the point at which
A) average total cost is minimized. B) average variable cost is minimized. C) average fixed cost is minimized. D) total product is maximized.
Economics
Which of the following is not a correct characterization of the U.S. business cycle?
A) Employment is procyclical. B) Consumption is procyclical. C) Real wages are procyclical. D) Prices are procyclical.
Economics