Multiple Choice
In which of the following situations are wages the least likely to be sticky?
A) Unionized workers are in the second year of a three-year labour contract.
B) A firm that pays efficiency wages to its employees is experiencing an economic recession.
C) A firm has an implicit contract with its employees regarding wages during recessions and expansions.
D) A firm hires hourly workers based on changes in the supply and demand for its products.
Correct Answer:
Verified
Correct Answer:
Verified
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