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:

Distributive Property

A property that allows one to multiply a sum by a number by multiplying each addend individually by the number.

Algebra

A field within mathematics that focuses on the use of symbols and the principles governing their manipulation, serving as a foundational basis for nearly the entirety of mathematical disciplines.

Terms

The individual elements or components of an expression, separated by plus or minus signs.

Equal

Signifying mathematical equivalency or equality between two expressions or entitites.