If Nominal Wages Are Sticky in the Downward Direction

question 172

Multiple Choice

If nominal wages are sticky in the downward direction,

• A)unemployment may persist for long periods of time
• B)shortages of labor may persist for long periods of time
• C)increases in real wages will happen too quickly to affect unemployment
• D)nominal wage increases will reduce the price level
• E)decreases in nominal wages will increase the inflation rate

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Definitions:

Planned Parenthood

A healthcare organization that provides reproductive health care and education globally.

Birth Control Clinic

A healthcare facility that offers services and information related to contraception and reproductive health.

Birth Control Movement

A social and political movement advocating for and promoting the use of birth control methods and educating the public about sexual health.

Kinsey Report

A series of studies on human sexual behavior published by Alfred Kinsey and his team, which challenged many conventional beliefs about sexuality in the mid-20th century.