If Wages Are Sticky, Then Monetary Policy Actions

question 116

Multiple Choice

If wages are sticky, then monetary policy actions

• A) are more effective than if wages were not sticky.
• B) have to be announced ahead of implementation to be effective.
• C) have to be coordinated with union labor contract negotiations.
• D) have no impact on either prices or GDP.

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Definitions:

Oral Contract

An agreement made through spoken words rather than written documentation, which can be legally binding in some cases.

Statute of Frauds

The Statute of Frauds is a legal doctrine that requires certain types of contracts to be in writing and signed by the parties involved to be enforceable.

Oral Evidence

Testimony given by a witness in court or during a legal proceeding that is spoken and not written.

Written Contract

A legally binding agreement between two or more parties that is put in writing and signed by the parties.