Related to the Economics in Practice on p. 572: According to the study cited in the Economics in Practice, wages tend to

A. change in lock step with changes in the price level.
B. remain rigid in both and upward and downward direction.
C. remain unchanged for about a year, which tells us that average wages change must less than average prices.
D. behave in a way that contradicts the theory of sticky wages.


Answer: C

Economics

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The factor that leads to underpricing and overuse of an economic resource is

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Economics

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Economics