Which of the Following Would Explain Wage Rigidities

question 81

Multiple Choice

Which of the following would explain wage rigidities?

• A)Inflexible long-term contracts
• B)Inflation
• C)The liquidity of financial assets
• D)The reluctance of firms to lay off workers
• E)High worker productivity

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Definitions:

Incompatible Motivations

Desires or goals that conflict with one another, making it difficult or impossible to achieve them simultaneously.

Behavioural Impulses

Behavioural impulses are spontaneous urges to act in certain ways, often without conscious deliberation, driven by psychological or physiological needs.

Conflict

A situation or process that involves opposing actions or viewpoints, leading to a state of tension or disagreement.

Pressure

The application of force upon a surface by an object, fluid, etc., in contact with it or the stress or urgency of matters demanding attention.