Which of the Following Best Describes How Nominal Wages Will

question 31

Multiple Choice

Which of the following best describes how nominal wages will be affected in the long run?  

• A) Nominal wages and real wages tend to be equal. 
• B) Nominal wages are more flexible downward than upward. 
• C) Nominal wages are more flexible than prices. 
• D) Sustained and continuous unemployment suggests nominal wages do NOT fall quickly.

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Definitions:

Preponderance of Evidence

A standard of proof in civil cases, which requires that the greater weight of the evidence must support the party's case.

Reasonable Suspicion

A legal standard of proof in United States law that is less than probable cause, the standard for arrests, but more than an inchoate and unparticularized suspicion or hunch, used to justify brief stops and detentions, but not full searches.

Coin Flip

A simple randomization technique used to select one of two options, often used in decision making, games, and settling disputes.