Which of the Following Statements Is True

Multiple Choice

Which of the following statements is true?

A) Firms usually tend to lay off workers instead of cutting wages to reduce costs.
B) Firms usually tend to cut wages instead of laying off people to cut costs.
C) Firms tend to increase wages in periods of contracting economic activity to boost morale.
D) Firms tend to decrease wages in periods of contracting economic activity to boost labor productivity.