Please answer both sir I will rate immediatelyWe don't typically see wages fall in response to an economic downturn because:Multiple Choicethey are "sticky" and are slow to respond to shifts in the economy.labor supply adjusts so that the market stays at the original equilibrium wage level.the government sets tight regulations on how firms compensate their employees.there is often little change in the labor market in response to economic conditions. Wage stickiness in an economic downturn can result in:Multiple Choicea surplus of labor.a shortage of labor.actual wages that are temporarily above the market-clearing level.cyclical unemployment

By "sticky" costs, we mean the perception that a few dealers set costs in ostensible terms that…

Answered: We don't typically see wages fall in…

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

Related questions

Question

100%

Please answer both sir I will rate immediately

We don't typically see wages fall in response to an economic downturn because:

Multiple Choice

they are "sticky" and are slow to respond to shifts in the economy.
labor supply adjusts so that the market stays at the original equilibrium wage level.
the government sets tight regulations on how firms compensate their employees.
there is often little change in the labor market in response to economic conditions.

Wage stickiness in an economic downturn can result in:

Multiple Choice