Nominal Wages Are Assumed Fixed in the Short Run Because

question 62

Multiple Choice

Nominal wages are assumed fixed in the short run because:

• A) workers have wages stated in their contracts.
• B) of minimum wage laws.
• C) workers are unaware of short-run changes in their real wages.
• D) all of the above are true.
• E) none of the above are true.

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Definitions:

Net Operating Income

The income from a company's operations after deducting operating expenses, excluding revenue and expenses from non-operational activities.

Budgeting

The process of creating a plan to spend your money, outlining expected revenues and expenses.

Activity Variance

The difference between planned levels of activity and actual levels, often analyzed to improve budgeting and operational efficiency.

Wages And Salaries

Payments made by businesses to their workforce, which may be calculated on an hourly, daily, or yearly basis, encompassing both fixed salaries and variable wages.