According to Keynes, the "stickiness" of wage rates could best be explained by: a.government...
Question:
According to Keynes, the "stickiness" of wage rates could best be explained by:
a. government interference.
b. minimum wage laws.
c. short-term labor contracts.
d. unions and long-term labor contracts.
The stickiness of Wage Rates:
This concept means the act of wages of employees working in a given firm responding slowly to changes the production process in an economy or a country. Stickiness or nominal rigidity of prices represent a situation where pay per employee remains constant. Wage stickiness results from the fact any worker will prefer a wage rise to a wage cut.
Answer and Explanation: 1
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View this answerd. unions and long-term labor contracts.
According to John Keynes present of labor unions lead to wage stickiness since these unions could not allow...
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Real Wage: Definition & Formula
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Chapter 5 / Lesson 12
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Learn what real wage is and how to calculate real wage using the real wage formulas. See examples of real wage calculations, and understand the differences between nominal wage and real wage.
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