If Output Is Above Its Natural Rate,then According to Sticky-Wage

question 47

Multiple Choice

If output is above its natural rate,then according to sticky-wage theory

• A)workers and firms will strike bargains for lower wages.In response to the lower wages firms will produce less at any given price level.
• B)workers and firms will strike bargains for lower wages.In response to the lower wages firms will produce more at any given price level.
• C)workers will strike bargains for higher wages.In response to the higher wages firms will produce less at any given price level.
• D)workers and firms will strike bargains for higher wages.In response to the higher wages firms will produce more at any given price level.

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