What Do Economists Mean by the Term "Sticky Wage

question 92

Multiple Choice

What do economists mean by the term "sticky wage"?

• A) It refers to the reluctance by employers to decrease 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.

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Definitions:

Behaviorist

A psychologist or scientist who studies and applies behaviorism, a theory that all behaviors are learned through interaction with the environment.

Stress Hormones

Chemicals released in the body during stress, such as cortisol and adrenaline, which prepare the body for a fight-or-flight response.

Neurobiological Regulation

The mechanisms by which the nervous system controls and regulates body functions and maintains homeostasis.

Crying

A loud vocal expression of emotion, typically a baby's first form of communication, indicating a range of needs or discomforts.