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When the economy falls into a recession, it is common for many businesses to lay off workers or otherwise trim their workforce by eliminating various

When the economy falls into a recession, it is common for many businesses to lay off workers or otherwise trim their workforce by eliminating various positions rather than adjusting wages downward in order to maintain equilibrium. Do you think it is rational for workers to prefer sticky wages to wage cuts, when the consequence of sticky wages is unemployment for some workers? Why or why not? Explain whether your beliefs line up with or deviate from any of the arguments listed in the chapter on unemployment.

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