Nominal Wages Are Sticky Because

question 294

Multiple Choice

Nominal wages are sticky because:

• A) wages are slow to rise when there are labour shortages and slow to fall even when the level of unemployment is significant.
• B) wages remain fixed in the long run,increasing the profitability of the firms.
• C) wages are slow to fall when there are labour shortages and slow to rise even when the level of unemployment is significant.
• D) in the long run all wages are adjusted for inflation.

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Definitions:

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A period roughly between the years 1601 to 1630, marked by significant cultural, political, and technological changes worldwide.

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The process by which European countries established control over territories across the world, starting in the late 15th century.