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Unformatted text preview: The time periods between phases are very unpredictable and it is often hard to tell where a company is during the cycle. Page 480 #3 There would be many consequences if legislation was passed requiring all employers in the U.S. to pay dismissed workers one week of severance pay for every year they were employed. A regulation such as this makes it more costly to dismiss workers as well as making it more costly for firms to hire them. The dismissal rate of employees would decrease, along with the rate of new-hires. Firms will expand output without the help of extra workers, causing productivity to decrease. The unemployment among younger workers will increase as well....
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- Fall '08