Question

What is wage-employment paradox?

Answer 1

Explanation:

The paradox of toil is the economic hypothesis that total employment will shrink if everybody wants to work more when "the short-term nominal interest rate is zero and there are deflationary pressures and output contraction".

Answer 2

Wage-employment paradox

Explanation:

• When "the short-term nominal interest rate is zero and there are deflationary pressures and output contraction," the paradox of toil is the economic premise that total employment will decline if everyone desires to work more.
• Thus, wage employment is defined as "a mutual agreement between two parties (known as the employer and the employee) in which the employee (generally an individual) agrees to work for the employer (generally a business firm, government office, or occasionally an individual) under certain terms and conditions."