Why Is It Difficult to Measure the Cyclical Properties of the Real

question 38

Multiple Choice

Why is it difficult to measure the cyclical properties of the real wage?

• A) Workers have money illusion.
• B) Wages are sticky.
• C) The composition of employed workers changes over the business cycle.
• D) Firms refuse to report data on workers' wages.
• E) monetary and fiscal policy intervention

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