The Argument That the Nominal Wage Is Fixed Because of Long-Term

question 60

Multiple Choice

The argument that the nominal wage is fixed because of long-term labour contracts

• A)closely fits the real world.
• B)means that productivity shocks are an important cause of business cycles.
• C)explains sticky price models.
• D)explains equilibrium business cycle models.
• E)does not take into account why such a contract would be written.

---

Definitions:

Inventory Error

An incorrect calculation or reporting of inventory quantity or value, which can affect financial statements.