When the economy enters into a recession, your employer is ...

[saraeharris]

When the economy enters into a recession, your employer is ________ to reduce your wages because ________.
 
  A) likely; aggregate demand is vertical in the long run
  B) unlikely; lower wages reduce productivity and morale
  C) likely; output prices always fall during recession
  D) unlikely; output and input prices generally fall during recession

Question 2

Refer to Figure 11-11. For output rates greater than 20,000 picture frames per month
 
  A) the firm will not make a profit because the average cost of production will be too high.
  B) the firm will experience diminishing returns.
  C) the short-run average total cost will equal the long-run average total cost of production.
  D) the firm will experience diseconomies of scale.

[Benayers]

Answer to Question 1

B

Answer to Question 2

D

[saraeharris]

Excellent

[adf223]

TYSM