Wages Tend to Be "Sticky" Because

question 134

Multiple Choice

Wages tend to be "sticky" because:

• A) contracts are often negotiated for long terms and cannot be easily changed.
• B) workers are less likely to work as hard if their pay may be cut due to market performance and not their performance.
• C) constantly changing wages creates uncertainty and costs the employer a lot of time and energy to change wage rates.
• D) All of these are possible reasons why wages might be sticky.

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