2435EconomicsMedium
The relative-wage explanation for the existence of downwardly sticky wages emphasizes?
Aunspoken agreements between workers and firms that firms will not cut wages
Bthe incentive that firms may have to hold wages above the market clearing rate
Cemployment contracts that stipulate workers’ wages usually for a period of one to three years
Dthe contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
Correct answer
D. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts
Explanation
The correct answer is the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts.