One Explanation for Why Wages Adjust Slowly and with a Substantial

Multiple Choice

One explanation for why wages adjust slowly and with a substantial lag to changes in aggregate demand is

A) the presence of formal multiyear labor contracts in unionized industries.
B) the widespread practice of profit-sharing plans as part of most employee compensation packages.
C) that such changes have little or no impact on rates of unemployment because the short-run aggregate supply curve is vertical.
D) that labor markets clear readily without changes in wage rates.
E) a belief by most workers that real wages are unaffected by changes in the price level.