Which of the Following Contributes to the Downward Inflexibility of Wages

question 163

Multiple Choice

Which of the following contributes to the downward inflexibility of wages, according to mainstream economists?

• A) efficiency wages
• B) a monetary rule
• C) price-level surprises
• D) coordination failures

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Definitions:

Covariance

A measure of how two securities move together, used to assess the degree to which they co-vary.

Assets GM and GE

Refers to the tangible and intangible items owned by General Motors (GM) and General Electric (GE) that are used in their operations to generate revenue.

Beta

A measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole.

Evolution

The gradual development of something, often used in the context of the biological process by which organisms change over generations.