Sticky Nominal Wages Can Result in

question 80

Multiple Choice

Sticky nominal wages can result in

• A)lower profits for firms when the price level is lower than expected.
• B)a decrease in real wages when the price level is lower than expected.
• C)a short-run aggregate-supply curve that is vertical.
• D)a long-run aggregate-supply curve that is upward-sloping.

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Definitions:

Marginal Tax Rates

are the rates at which the last dollar of a taxpayer’s income is taxed, indicating the percentage of tax applied to your income for each tax bracket in which you qualify.

Total Tax

The cumulative amount of taxes that an individual or entity is obligated to pay to the government, including federal, state, and local taxes.

Provincial Tax Brackets

The tiers of income ranges in Canadian provinces that determine the rate at which income is taxed, varying by province.

Cash Flow

The total net flow of cash transactions in and out of an enterprise, deeply affecting its liquidity quotient.