According to the Sticky Wage Theory, Which of the Following

Multiple Choice

According to the sticky wage theory, which of the following is consistent with a more-than-expected increase in the price level?

A) Real wages rise, so firms will hire more workers.
B) Real wages rise, so firms will hire fewer workers.
C) Real wages fall, so firms will hire more workers.
D) Real wages fall, so firms will hire fewer workers.