When economists say wages are "sticky," they mean that they:
A. are slow to adjust to changes in the economy, and can cause unemployment.
B. stick to current market trends, and adjust to equilibrium when changes in the economy occur.
C. get stuck behind current market trends, and follow a typical two-week lag with changes in the economy.
D. lead market trends, and other variables will stick to the wage rate and follow it closely.
A. are slow to adjust to changes in the economy, and can cause unemployment.
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Indicate whether the statement is true or false
There is some misunderstanding of the WTO's provisions for environmental protection in trade. The WTO actually:
a. allows nations to bar all imports from nations that do not conform to their own standards. b. provides that nations may enforce any standards for particular products as long as the standards apply equally to domestic producers and importers. c. does not make any pretense of caring at all about the environment. d. is very inconsistent in its rulings.
Which of the following Federal Reserve policy tools is used most often?
a. Open market operations b. Changing the required reserve ratio c. Changing the discount rate d. Changing the prime lending rate e. Moral suasion
If an economy is operating on its production possibilities curve, it is:
A) efficient and fully employed. B) fully employed but not necessarily efficient. C) efficiently producing but not necessarily fully employed. D) inevitably going to grow in the future.