According to the Keynesians,labor contracts
A)are unimportant for modern labor markets because few worker are unionized.
B)mean that real wages are inflexible.
C)mean that money wages never adjust.
D)imply that nominal wages adjust,but only periodically.

Question

Quizplus · Accepted Answer

Keynesians argue that labor contracts imply nominal wages adjust, but this adjustment happens periodically due to the nature of contracts, which often set wages for a fixed term before renegotiation.

According to the Keynesians,labor Contracts