Question

. Sticky nominal wages can result in A. lower profits for firms when the price level is lower than expected. B. a decrease in real wages when the price level is lower than expected. C. a short-run aggregate-supply curve that is vertical. D. a long-run aggregate-supply curve that is upward-sloping.

Answer 1

a

Step-by-step explanation:

Wages are sticky if it increases easily but does not decrease easily

If wages are sticky and price falls, it would be difficult to reduce wages , thus profit levels would fall