Nominal Wages Are Sticky Because

Multiple Choice

Nominal wages are sticky because:

A) wages are slow to rise when there are labour shortages and slow to fall even when the level of unemployment is significant.
B) wages remain fixed in the long run,increasing the profitability of the firms.
C) wages are slow to fall when there are labour shortages and slow to rise even when the level of unemployment is significant.
D) in the long run all wages are adjusted for inflation.