Wage Contracts Are Often Set for Periods of Up to Three

Multiple Choice

Wage contracts are often set for periods of up to three years.As a result,fluctuations in aggregate demand and aggregate supply tend to

A) cause changes in the amount of involuntary unemployment.
B) cause greater inflexibility of wages.
C) have no effect in labour markets until wages are renegotiated.
D) clear the labour market.
E) either increase or decrease the NAIRU.