Many employers opted to freeze wages-lower wages

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A. During our last recession, many employers opted to freeze wages, lower wages, and decrease their current labor force; therefore, does this align with Keynesian Theory? Is Keynesian Theory only applicable in the short-run as opposed to the long run? Please explain.

B. In 2013-2014, the nation was struggling with a persistent high level of unemployment, low rates of economic growth, and high federal budget deficits. Explain how solutions to these economic problems conflict with one another. If you were economic dictator, how would you proceed against this set of problems?

Reference no: EM131163014

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