Multiple Choice
Which of the following correctly explains why real wages may vary in the short run?
A) Workers usually prefer inflexible nominal wage agreements.
B) Since wage bargaining is costless, firms and workers negotiate new wages frequently.
C) The level of inflation in most economies is stable.
D) In most industries, nominal wage adjustment is instantaneously linked to inflation.
Correct Answer:
Verified
Correct Answer:
Verified
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