Wage rates do not respond quickly because:
A) workers and firms cannot agree on new wage rate increases.
B) wage rates are set by daily auctions for labour services.
C) different workers and firms have wage rate agreements that overlap in time.
D) wage bargaining is not pleasant.
Correct Answer:
Verified
Q25: When the economy is in long-run equilibrium
Q26: When the economy is in long-run equilibrium
Q27: Consider a graph with inflation rate in
Q28: Consider a given AD curve with a
Q29: Slow wage rate adjustments:
A) increase the time
Q31: When aggregate demand falls and output falls:
A)
Q32: Recessionary gaps result in:
A) higher wage rate
Q33: Inflationary gaps result in:
A) higher wage rate
Q34: Differences in countries' adjustments to output gaps
Q35: A reduction in output and the demand
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