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.
D. All of these are possible reasons why wages might be sticky.
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Describe and explain the real business cycle theory
What will be an ideal response?
A company has an investment project that will cost $2 million today and yield a payoff of $3 million in 5 years. What interest rate represents the cutoff between profitability and nonprofitability for this project?
Which of the following changes shifts the AD curve down and to the left?
A. A decrease in corporate taxes B. A decrease in consumer confidence C. A temporary increase in government purchases D. A rise in the nominal money supply
Explain how firms that each produce as efficiently as they can may not be equally productive
What will be an ideal response?