What do economists mean by the term "sticky wage"?
A) It refers to the reluctance by employers to increase nominal wages during an inflationary period.
B) It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market.
C) It refers to a breakdown in wage negotiations between employers and employee unions.
D) It refers to a union negotiated wage.
Correct Answer:
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