All of the following are reasons why the wages of workers and the prices of inputs rise more slowly than the prices of final goods and services except
A)unions are successful in pushing up wages.
B)firms are often slow to adjust wages.
C)contracts make prices and wages sticky.
D)menu costs make some prices sticky.

Question

Quizplus · Accepted Answer

Unions can actually push up wages, which would result in wages rising faster than the prices of final goods and services. The other options (B, C, and D) are all reasons why wages and input prices may be slow to adjust, which would result in them increasing more slowly than the prices of final goods and services.

All of the Following Are Reasons Why the Wages of Workers