Which of the following is generally true of nominal wages?
A)In the long run,nominal and real wages tend to be equal.
B)Nominal wages are more flexible downward than upward.
C)Nominal wages are more flexible than prices.
D)Sustained and continuous (cyclical)unemployment suggests nominal wages do not fall quickly.
E)Nominal wages do not rise during labor shortages.

Question

Quizplus · Accepted Answer

Sustained and continuous unemployment implies that nominal wages are sticky downward, indicating that they do not fall quickly in response to labor market imbalances.

Which of the Following Is Generally True of Nominal Wages