In the long run, nominal wages are:
A) sticky downward but flexible upward.
B) sticky upward but flexible downward.
C) sticky both upward and downward.
D) flexible, because contracts and informal agreements are renegotiated in the long run.

Question

Quizplus · Accepted Answer

In the long run, nominal wages are flexible because contracts and informal agreements can be renegotiated, allowing wages to adjust to changes in the economy.

In the Long Run, Nominal Wages Are