The fear of unwanted price wars may explain why many firms are reluctant to a. reduce wages when a decline in aggregate demand occurs. b. reduce prices when a decline in aggregate demand occurs. c. provide wage increases when labor productivity rises. d. expand production capacity when an increase in aggregate demand occurs.

The fear of unwanted price wars may explain why many firms are reluctant to "reduce prices when a decline in aggregate demand occurs."

A price war is an aggressive trade among adversary organizations who bring down costs to undermine each other. A price war might be utilized to expand income for the time being, or as a more extended term technique to pick up market share. Price wars can be averted through vital value administration (with non-aggressive pricing), an exhaustive comprehension of the opposition, or even correspondence with contenders.

the answer is d.  payroll withholding

Explanation:

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