a) Forces labor demand to equal labor supply,
b) Is caused by sectoral shifts,
c) Prevents labor demand and labor supply from reaching the equilibrium level,
d) Increases the rate of job finding.
Nominal wage is the wage paid to workers and/or employees based on the amount stated in the employment contract. This is also the wage not adjusted for inflation which means that inflation may decrease its value and the purchasing power of the worker.
Answer and Explanation: 1
Wage rigidity: d) Increases the rate of job finding.
This is when firms become unable to lower down their wages because employees might a form a...
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fromChapter 1 / Lesson 22
Explore the nominal wage definition to understand this concept and related formula. Learn about nominal wage vs. real wage examples, differences, and theorists.