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List Three Reasons Why Nominal Wages Can Be Sticky in the Short

question 33

Essay

List three reasons why nominal wages can be sticky in the short run.


Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations by comparing its current assets to its current liabilities.

Liquidity Ratio

Measures a company's ability to meet its short-term obligations using its most liquid assets.

Profit Margin

A profitability ratio calculated by dividing net income by revenue, expressing the percentage of revenue that translates into net income.

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