What are the consequences of Real wage unemployment?

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Answer 1

Answer:

Explanation:

Firstly, in a recession, if you cut wages, it will cause a fall in spending because people have less income, this will reduce aggregate demand and therefore lead to lower economic growth. This, in turn, will lead to less demand for labour.

Answer 2
This is a good question, I feel like the person who first responded gave a good detailed academic answer!

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