If Wages Are Sticky,then Monetary Policy Actions

question 64

Multiple Choice

If wages are sticky,then monetary policy actions:

• A) are more effective than if wages were not sticky.
• B) have to be announced ahead of implementation to have an effect.
• C) have to be coordinated with union labor contract negotiations.
• D) have no impact on either prices or GDP.

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Definitions:

Awaking

The process or state of transitioning from sleep to wakefulness, involving activation of the nervous system and increased brain activity.

Spindle Activity

Oscillatory brain activity characterized by bursts of waves typically observed during specific sleep stages and believed to play a role in memory consolidation.

Rhythmic Activity

Patterns of repeated motions or sounds that occur at regular intervals, found in various biological and mechanical systems.

Medial Pontine Reticular Formation

A section of the brainstem involved in regulating autonomic functions, locomotion, and sleep-wake cycles.