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

question 162

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) 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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Definitions:

OCB

Stands for "Organizational Citizenship Behavior," referring to the voluntary contributions of employees beyond their formal job requirements.

Support

Assistance or backing provided by individuals or groups, offering physical, emotional, or financial help to others.

LMX Differentiation

The variation in the quality of leader-member exchanges within an organization, leading to different relationships between leaders and their followers.

LMX Relationships

Stands for Leader-Member Exchange, a concept explaining how leaders develop disparate relationships with members of their team, leading to different experiences and outcomes for team members.