In which of the following situations are wages the least likely to be sticky?
A) Unionized workers are in the second year of a three-year labor contract.
B) A firm that pays efficiency wages to its employees is experiencing an economic recession.
C) A firm has an implicit contract with its employees regarding wages during recessions and expansions.
D) A firm hires hourly workers based on changes in the supply and demand for its products.
D
You might also like to view...
The Federal Reserve increases the interest rate at which it lends to other banks. The resulting economic change will be represented by a(n): a. upward movement along the short-run Phillips curve. b. downward movement along the short-run Phillips curve. c. rightward shift of the short-run Phillips curve
d. leftward shift of the short-run Phillips curve.
Suppose an economy produces only three products, A, B, and C. Quantity purchased and changes in the prices of these items over a period are shown below:??Average Price Per UnitProductQuantityYear 1Year 2A10$10$8B152022C85055Using year 1 as a base, the value of the country's nominal GDP in year 2 is:
A. the same as nominal GDP in year 1. B. $850, assuming no change in quantity from year 1 to year 2. C. $800 assuming no change in quantity from year 1 to year 2. D. $3,270 assuming no change in quantity from year 1 to year 2.
Which of the following examples shows monopolistic competition?
a. RKS Communications has no other competitors in the GPS market. b. Johnson Acres produces corn that is identical to the corn produced by other farms. c. Bubbly Soft Drinks emphasizes it has a lower price than other soft drink brands. d. Pleasant Dreams is one of the few firms in the antique jewelry market.
Because a decrease in the nominal interest rate reduces the opportunity costs of holding money, the money demand curve:
A. slopes upward. B. shifts to the right. C. shifts to the left. D. slopes downward.