Sticky wages:
A. slow economic recoveries but decrease the costs that unemployed workers bear.
B. speed economic recoveries but increase the costs that unemployed workers bear.
C. slow economic recoveries and increase the costs that unemployed workers bear.
D. speed economic recoveries and decrease the costs that unemployed workers bear.
Ans: C. slow economic recoveries and increase the costs that unemployed workers bear.
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What can good assumptions do?
a) cause economists to leave out important variables that make their theories worthless b) simplify the complex world and make it easier to understand c) further complicate an already difficult topic d) allow economists to see the "big picture" instead of only small segments
A legal ceiling set below the market-clearing interest rate would tend to
A) create a surplus of loans. B) create a shortage of loans. C) increase the demand for loans. D) decrease the supply of loans. E) do none of the above.