Final answer:
As payment forms shift from less aggregated to more aggregated, there is a gain in stability but a loss in flexibility, mirroring how economic growth leads to cheaper physical goods and 'sticky' wages. These sticky wages are inflexible and can contribute to unemployment during tougher economic times.
Step-by-step explanation:
When physical compensation changes from the least aggregated form of payment, such as individual transactions for specific goods or services, to the most aggregated form, like a salary or wage, there is an increase in stability but a decrease in flexibility. This shift reflects a broader economic transition where physical goods demand less income due to continued economic growth, leading to goods becoming cheaper.
Theories in economics suggest that as the economy or a business faces tough times, wages tend to be sticky and don’t easily move downward, maintaining stability but limiting the flexibility to adjust for economic fluctuations.
Understanding this concept is key in grasping the economic scale's rise without a proportional increase in energy expenditure, even when physical resources remain unchanged.
The balancing act between wage inflexibility and unemployment is an important consideration, as wages that are inflexible and unlikely to fall can lead to either short-run or long-run unemployment, depending on the economic conditions.