Principles of Macro. (Looseleaf)-With Access (Custom)
11th Edition
ISBN: 9781269334082
Author: CASE
Publisher: PEARSON
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Chapter 14, Problem 13P
To determine
Impact of social and implicit contracts on sticky wages.
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What are the causes of inflexible or sticky wages
Karl Marx argued that an 'Industrial Reserve Army of the Unemployed' would be produced by capitalism and would serve as a check on wages. In his argumentation, how does capitalism produce unemployment? How does this affect wages? How do capitalists benefit from unemployment? How might unemployment hurt capitalists?
Give two reasons why a firm might want to pay workers above the competitive wage and how can this lead to unemployment?
Chapter 14 Solutions
Principles of Macro. (Looseleaf)-With Access (Custom)
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