Wages tend to be "sticky" because:
A) contracts are often negotiated for long terms and cannot be easily changed.
B) workers are less likely to work as hard if their pay may be cut due to market performance and not their performance.
C) constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates.
D) All of these are possible reasons why wages might be sticky.
Correct Answer:
Verified
Q77: Classical unemployment can be caused by which
Q78: When governments subsidize retraining programs for unemployed
Q79: Sarah used to be a music teacher
Q80: When the economy slows down:
A) firms contract
Q81: Which of the following is not the
Q83: We don't typically see wages _ in
Q84: When the economy swings back toward the
Q85: When growth goes down, unemployment tends to
Q86: An economic slow-down predicts the new equilibrium
Q87: Supporters of minimum-wage legislation argue that:
A) workers
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