Wages tend to be sticky
A)because of contracts,social norms,and notions of fairness.
B)because of contracts,but not social norms or notions of fairness.
C)because of social norms and notions of fairness,but not contracts.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

Wages tend to be sticky because of contractual agreements between employers and employees, as well as social norms and notions of fairness which place pressure on employers to maintain wages at a certain level. These factors make it difficult for wages to adjust quickly in response to changes in the economy.

Wages Tend to Be Sticky