Gordon Argues That Individual Workers and Firms Prefer Long-Term Contracts,but

Multiple Choice

Gordon argues that individual workers and firms prefer long-term contracts,but that such contracts

A) raise the costs of doing business,a macroeconomic externality.
B) insure that output alone is adjusted as AD changes and therefore,such contracts impose high costs of output and employment instability on society.
C) insure that the price level alone is adjusted as AD changes and therefore,such contracts impose high costs of output and employment instability on society.
D) insure a macroeconomic externality,rigid unemployment.