Which of the following explains the Phillips curve trade-off?
a. workers' focus on job security as the economy expands rapidly
b. firms weaken their resistance to wage pressure during periods of rapid economic growth
c. firms' ability to pass along higher wage rates in the form of higher prices during recessions
d. an unusual increase in resource supply
e. workers' insistence on wage increases during recessions to compensate for unemployment
B
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The ________ is the ratio of the number of people in the labor force to the total adult population
a. unemployment rate b. labor force c. labor force participation rate d. employment rate
Under oligopoly, if one firm in an industry significantly increases advertising expenditures in order to capture a greater market share, it is most likely that other firms in that industry will:
A. Pursue a strategy to reduce advertising expenditures to maintain profits B. Decide to increase advertising expenditures even if it means a reduction in profits C. Make no changes in advertising expenditures because advertising is effective in the short run, but not the long run D. Increase the price of the product to improve profits and then increase advertising expenditures