skydog19Lv1
18 Nov 2021
Problem 37
Page 523
Section: CRITICAL THINKING QUESTIONS
Chapter 21: Unemployment
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18 Nov 2021
Introduction
The sticky wage theory is an economic concept describing how wages adjust slowly to changes in labor market conditions. Unlike other markets where prices are dictated by supply and demand, wages tend to remain above equilibrium as employees resist wage cuts. Wages remain sticky for various reasons- union, employment contract etc.
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