What do economists mean by the term "sticky wage"?
A. It refers to the reluctance by employers to increase nominal wages during an inflationary period.
B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market.
C. It refers to a breakdown in wage negotiations between employers and employee unions.
D. It refers to a union negotiated wage.
Ans: B. It refers to a wage that is slow to adjust to its equilibrium level, creating sustained periods of shortage or surplus in the labor market.
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A) The price of a pizza falls. B) The price of a soda falls. C) Your income increases. D) Both answers A and B are correct.
Which of the following is assumed to be constant along a per-worker production function?
a. Output per worker b. Capital per worker c. Level of technology d. Amount of capital e. Amount of output
The tax multiplier equals 1 ? spending multiplier
a. True b. False Indicate whether the statement is true or false
Economics is
a. exclusively the study of the markets for stocks and bonds b. the study of choice under conditions of scarcity c. exclusively the study of business firms d. fundamentally the same as sociology e. applicable only when scarcity is not a problem