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:

Three Mountains Task

A cognitive development test designed by Jean Piaget to assess a child's ability to comprehend and view different perspectives, showcasing the development of spatial awareness and egocentrism.

Egocentrism

The psychological condition where a person is unable to differentiate between the self and other people, leading to difficulty in understanding perspectives other than one's own.

Depth Perception

The ability to perceive the world in three dimensions and judge the distance of objects.

Animism

The belief that objects, places, and creatures all possess a distinct spiritual essence, prevalent in many indigenous cultures.