Which of the Following Is Generally True of Nominal Wages

question 144

Multiple Choice

Which of the following is generally true of nominal wages?

• A)In the long run,nominal wages tend to equal real wages.
• B)Nominal wages are more flexible downward than upward.
• C)Nominal wages are more flexible than prices.
• D)Nominal wages tend to adjust slowly in the downward direction.
• E)Nominal wages do not rise during labor shortages.

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Definitions:

Initial State

Initial State refers to the beginning condition or situation from which a process, system, or problem-solving endeavor starts.

Ill-defined Problem

A problem that lacks a clear goal or solution path, making it difficult to solve through conventional methods.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering creativity and problem-solving.

Mental Set

A framework or mindset that shapes an individual's approach to problem-solving and can sometimes limit the exploration of alternative solutions.