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Suppose that flight attendants are laid off during a recession because of an unspoken agreement betw

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Suppose that flight attendants are laid off during a recession because of an unspoken agreement betw

Suppose that flight attendants are laid off during a recession because of an unspoken agreement between the flight attendants and airline executives that wages will not be reduced. This example is consistent with the:
A) explicit contract explanation of unemployment.
B) relative-wage explanation of unemployment.
C) implicit contract explanation of unemployment.
D) efficiency wage explanation of unemployment.

Textbook

Principles of Macroeconomics

Edition: 11^th

Authors: Case, Fair, Oster

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8 years ago

Perfect answer, thank you

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