Related to the Economics in Practice on p. 448: Compared to students who graduate college and obtain employment during an economic expansion, students who graduate during a recession often find that starting wages are ________ and wage growth is ________.
A) lower; slower
B) lower; faster
C) higher; slower
D) higher; faster

Question

Quizplus · Accepted Answer

During a recession, companies tend to hire fewer employees, resulting in increased competition for fewer available jobs. This leads to lower starting wages for graduates compared to those who start their careers during an economic expansion. Additionally, slower wage growth is common during a recession because companies may not have the resources to give significant raises to their employees when profits are down.

Related to the Economics in Practice on P