If the nominal wage is sticky, then a decrease in the overall price level leads to _____ in the real wage firms have to pay. The firms respond by hiring _____ workers.
A) an increase; more
B) a decrease; more
C) an increase; fewer
D) a decrease; fewer
Correct Answer:
Verified
Q48: Which of the following variables is measured
Q49: In the upward-sloping range of the short-run
Q50: When _ wages are sticky, _ in
Q51: When _ wages are sticky, an increase
Q52: In the upward-sloping range of the short-run
Q54: If the real wage is sticky, then
Q55: The short-run aggregate supply curve is perfectly
Q56: Which one of the following will decrease
Q57: Which one of the following will increase
Q58: If an economy is going through a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents