Author Question: Which of the following is a reason for the existence of sticky wages? A) Cutting wages during an ... (Read 126 times)

james9437 · **on:** Jun 29, 2018

Which of the following is a reason for the existence of sticky wages?

A) Cutting wages during an economic downturn is illegal.
B) Some wages are set by contract.
C) Increasing wages means reduced profits during economic expansions.
D) By law, if one worker's wages are changed, all workers' wages must be changed.

Question 2

When tax revenues exceed the government's outlays, the budget

A) has a surplus and the national debt is decreasing.
B) is balanced and the national debt is decreasing.
C) has a deficit and the national debt is increasing.
D) has a surplus and the national debt is increasing.
E) None of the above because by law tax revenue cannot exceed the government's expenditures.