Because firms believe that lower wages will lead to reduced worker morale and lower productivity when...

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Question

Because firms believe that lower wages will lead to reduced worker morale and lower productivity when...

Because firms believe that lower wages will lead to reduced worker morale and lower productivity when a negative shock hits,

	a.	firms tend to increase employment
	b.	firms tend to lay-off workers in addition to lowering wages
	c.	firms tend increase employment in addition to lowering wages
	d.	firms tend to lay-off workers rather than lower wages

business economics

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Answer 1

Answer #1

firms tend to lay-off workers rather than lower wages

the above is answer..

because lower wages tend to reduce productivity

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Answer 2

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