Problem
Soon after Iraq invaded Kuwait in August 1990, many firms feared that a recession would occur. Anticipating a lack of demand for their goods, they began cutting back on production. If wages adjust, what will happen to the equilibrium level of wages and employment? If wages do not adjust, how does your answer change? In which case will unemployment exist?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.