Wednesday, June 16, 2010

Recession & Jobs

An Associated Press writer says that businesses to retain earnings "become more productive; they found ways to produce the same level of goods or services with fewer workers." I thought the competitive market forced firms to do than all the time, not just when earnings fall. Could it be that economists need a more refined behavior model to explain this? Could it be that firms satisfice most of the time, until some frame makes them breakout of the status quo?
LSJ May 14, 2010

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