We Don't Typically See Wages __________ in Response to an Economic

question 101

Multiple Choice

We don't typically see wages __________ in response to an economic downturn because ____________.

• A) rise; they are "sticky," and are slow to respond to shifts in the economy
• B) rise; they cannot rise above the equilibrium in any circumstance
• C) fall; they are "sticky" and are slow to respond to shifts in the economy
• D) fall; they cannot fall below where they were previously set due to inflation

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Definitions:

Price of Oil

The cost per barrel of crude oil as determined by global markets and supply-demand dynamics.

Quantity of Oil

The total volume or amount of oil available or in production at a given time.

Complements

Products or services that complement each other, such that a rise in the demand for one results in a rise in the demand for its counterpart.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.