Which of the Following Statements About the Behaviour of the Real

Multiple Choice

Which of the following statements about the behaviour of the real wages in the business cycles is true?

A) The sticky wage theory can produce procyclical real wages.
B) The sticky wage theory along with the price rigidity theory can explain the fact that the real wages are procyclical.
C) The sticky wage theory along with the price rigidity theory can explain the fact that the real wages are countercyclical.
D) The sticky wage theory can explain the fact that the real wages are acyclical.