Author Question: When the economy enters into a recession, your employer is ________ to reduce your wages because ... (Read 101 times)

saraeharris · **on:** Jun 29, 2018

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.