Staggered Wage and Price Setting

question 70

Multiple Choice

Staggered wage and price setting

• A)slows down the speed of wage and price adjustment.
• B)accelerates the adjustment of prices and wages in the economy.
• C)does not affect the speed of wage and price adjustment.
• D)has an uncertain effect on the speed of wage and price adjustment.
• E)is why wages and prices throughout the economy never adjust in the short run.

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Definitions:

Capital Gains

The profit earned from the sale of a capital asset, such as stocks, bonds, or real estate, where the sale price exceeds the purchase price.

Dividend Growth Rate

The annualized percentage rate of growth of a company's dividend payments.

Efficient Markets Hypothesis

The theory that all available information is already reflected in stock prices, implying it is impossible to consistently achieve higher returns.

Weak-Form Efficient

A theory stating that all past prices of a stock are reflected in its current price and that technical analysis cannot consistently outperform the market.