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:

Account Balances

The total amount of money in a financial account, calculated by adding all credits and subtracting all debits.

Expense Recognition Principle

An accounting principle that expenses should be recognized in the period in which they are incurred to produce revenues, aligning expenses with corresponding revenues.

Accounting Period

A specific time frame for which financial records are maintained and financial statements are prepared, usually annually or quarterly.

Earned

Income or revenue that has been realized through the sale of goods or services.