The other cause is the existence of monopolistic markets which allow firms to keep prices steady even when demand declines.
Four of its five chief causes involve disincentives for reducing employee wages: contract-fixed wages, loss of [*] morale and productivity, return for training investments, and legally-set minimum wages. The other cause is the existence of monopolistic markets which allow firms to keep prices steady even when demand declines. For 10 points—name this economic effect which prevents prices, and aggregate demand, from falling easily.
Four of its five chief causes involve disincentives for reducing employee wages: contract-fixed wages, loss of [*] morale and productivity, return for training investments, and legally-set minimum wages.
ratchet effect