We Don't Typically See Wages __________ in Response to an Economic

question 106

Multiple Choice

We don't typically see wages __________ in response to an economic upswing because ____________.

• A) rise; they are "sticky," and are slow to respond to shifts in the economy
• B) rise; they cannot rise above the equilibrium in any circumstance
• C) fall; they are "sticky," and are slow to respond to shifts in the economy
• D) fall; they cannot fall below where they were previously set due to inflation

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Definitions:

Coercive Power

The ability of an individual or group to compel or control actions of others through the threat of punishment or the implementation of sanctions.

Informational Power

Influence over others derived from the possession or access to valuable information.

Milgram

Refers to Stanley Milgram, a psychologist known for his experiment on obedience, demonstrating how far individuals would go to obey an authority figure.

Authoritarian Persons

Authoritarian Persons possess a personality type characterized by strict obedience to authority, favoring order and structure over personal freedom.