Which of the Following Is Generally True of Nominal Wages

question 116

Multiple Choice

Which of the following is generally true of nominal wages?

• A)In the long run,nominal 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 (cyclical)unemployment suggests nominal wages do not fall quickly.
• E)Nominal wages do not rise during labor shortages.

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Definitions:

Future Value

Also known as the compound amount, the total value of an investment; equal to the principal plus all the compound interest.

Equal Amount

A quantity that is the same in size, number, or value when compared to another.

Compounded Quarterly

The process of calculating and adding interest to a principal sum four times a year, leading to compound growth in the interest amount.

Future Value

The projected value of an investment at a future point in time, factoring in specifics like interest rates and compounding periods.