In the short-run, nominal wages are sticky due to the existence of both formal and informal agreements. This means that wages decrease slowly in the presence of low unemployment, and increase slowly in the presence of high unemployment.
Indicate whether the statement is true or false.
Ans: False.
Nominal wages decrease slowly in the presence of high unemployment, and increase slowly in the presence of low unemployment
You might also like to view...
The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive and unregulated, how much steel will be produced?
A) 0 tons B) 2 tons C) 4 tons D) 8 tons
Which is the most accurate statement about the Personal Responsibility and Work Opportunity Act of 1996?
A. The decline in the welfare rolls since the mid-to-late 1990s was due entirely to this law. B. This law was directly responsible for throwing millions of the poor out on the street. C. The law validated President Clinton's promise "to put an end to welfare as we know it." D. The law had very little success in removing people from the welfare rolls.
A supply curve is defined as the relationship between:
A. the price of a good and the quantity that consumers are willing to buy. B. the price of a good and the quantity that producers are willing to sell. C. the income of consumers and the quantity of a product that consumers are willing to buy. D. the income of consumers and the quantity of a product that producers are willing to sell.
The accompanying table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities. Number of EmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The total labor cost with 4 employees is:
A. $43,121. B. $38,000. C. $22,000. D. $21,500.