Which of These Is an Advantage of Long-Term Contracts in Resource

Multiple Choice

Which of these is an advantage of long-term contracts in resource markets?

A) Long-term contracts decrease the duration of recessionary gaps.
B) Long-term contracts reduce unemployment below its natural rate.
C) Long-term contracts help avoid recession in an economy.
D) Long-term contracts increase the flexibility of nominal wages.
E) Long-term contracts reduce the average cost of negotiation.