Nominal Wages React Slowly to Changes in Output for the Following

question 95

Multiple Choice

Nominal wages react slowly to changes in output for the following reasons,except one.Which is the exception?

• A) The nominal wage may be fixed and independent of output because of labor contracts that last up to three years.
• B) The real wage remains constant despite changes in output.
• C) Firms with a reputation for paying stable nominal wages will find it easier to attract new workers.
• D) Changing the nominal wage can be costly to firms.
• E) Nominal wages may be set by slow-moving corporate bureaucracies.

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Definitions:

Manufacturer's Sales

Transactions involving the sale of goods directly from the manufacturer to buyers, bypassing intermediary retailers or wholesalers.

Secure Source

A reliable and protected origin from which information, materials, or goods are obtained.

Tying Agreement

A contractual agreement where the sale of one product is conditioned on the purchase of another product or service.

Sherman Act

A foundational antitrust law in the United States aimed at prohibiting monopolistic business practices and ensuring fair competition.