Nominal Wages Are Sticky Because

question 33

Multiple Choice

Nominal wages are sticky because:

• A) wages are slow to rise when there are labor shortages and slow to fall even when the level of unemployment is significant.
• B) wages remain fixed in the long run, increasing the profitability of the firms.
• C) wages are slow to fall when there are labor shortages and slow to rise even when the level of unemployment is significant.
• D) in the long run all wages are adjusted for inflation.

---

Definitions:

Biconditional

A logical connective indicating a statement in which two conditions are both necessary and sufficient for each other.

Disjunctions

Logical operators that represent the relationship "or" between two elements, propositions, or sets, implying that at least one of the elements is true.

Negation

In logic, negation refers to the operation of changing a statement's truth value from true to false, or vice versa.

Disjunction

A logical operation that yields true if at least one of its operands is true.