During a recession the demand for labor falls. The sticky wages theory suggestsMultiple choice question.employers will not adjust their demand for labor.employers will hire more workers.unemployment will be greater than if the wage rate adjusted downward.unemployment will be less than if the wage rate adjusted downward.

Employment tends to rise whenGroup of answer choicesaggregate output falls.unemployment rises.aggregate output rises.labor productivity falls.

Based on wage setting behaviour, we know that an increase in the unemployment rate will causeSelect one:A.a reduction in the real wage.B.an upward shift of the WS curve.C.an increase in the real wage.D.no change in the real wage.

Which situation or event will cause a decrease in the wage rate and greater employment?YOUR ANSWERYour AnswerA slump in economic activity.The consumer demand for goods and services increases.A lower retirement age.A lower school leaving age.

"A significant economic downturn is increasingly possible, ................. a spike in the unemployment rate seems {likely}."https://www.abc.net.au/news/2023-03-01/australian-gdp-december-2022-abs-economic-growth-slowing/102038014 Referring to the quote above, explain how an economic downturn can affect the unemployment rate.Assume the economy is at Y1 - Use the diagram below to explain the effect that this change in unemployment has on the level of economic activity

Sticky prices and wages that require time for the economy to reach a new equilibrium is a characteristic of New economics, whereas rapid adjustments is a characteristic of New economics.