Wages Are Considered to Be Sticky Rather Than Flexible Since

Multiple Choice

Wages are considered to be sticky rather than flexible since

A) firms encounter menu costs when changing wages but not when changing prices
B) labor contracts contain cost-of-living adjustments
C) firms tend to look at labor as an expendable resource
D) firms are unsure about their competitors' behavior and only reluctantly change prices and wages following a change in aggregate demand
E) all of the above