The Sticky-Wage Theory of the Short-Run Aggregate Supply Curve Says

question 52

Multiple Choice

The sticky-wage theory of the short-run aggregate supply curve says that when the price level is lower than expected,

• A)relative to prices wages are higher and employment rise.
• B)relative to prices wages are higher and employment falls.
• C)relative to prices wages are lower and employment rises.
• D)relative to prices wages are lower and employment falls.

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Definitions:

Mutual Respect

The recognition and appreciation of the dignity and worth of another person or group, often resulting in positive social or working relationships.

Ritualistic Respect

The expression of reverence or honor through established, ceremonious practices within a cultural or religious context.

Emics

The locally relevant components of an idea; in cross-cultural psychology, aspects of a phenomenon that are specific to a particular culture.

Etics

The universal components of an idea; in cross-cultural psychology, aspects of a phenomenon that all cultures have in common.