When the Economy Enters into a Recession, Your Employer Is

Multiple Choice

When the economy enters into a recession, your employer is ________ to reduce your wages because ________.

A) unlikely; output and input prices generally fall during recession
B) unlikely; lower wages reduce productivity and morale
C) likely; output prices always fall during recession
D) likely; aggregate demand is vertical in the long run
E) likely; labour demand increases during recessions