Fischer and Taylor pointed out an important characteristic of both wage and price setting, the staggering of wage and price decisions. Which of the followin best explains the rational for these adjustments? O A. When hiring new engineers or business school graduates, firms do not consider the prevailing wage in the market for similarly educated workers. O B. Wage adjustments occur at different times for different firms throughout the year, much as the dates for firms' fiscal years vary throughout the year. O C. Indexing of wages to macroeconomic variables, such as the inflation rate, occurs frequently in wage setting arrangements of one year or less. O D. Bargaining among labor unions, where the wage set at one union is irrelevant at another due to membership turnover.

Fischer and Taylor pointed out an important characteristic of both wage and price setting, the staggering of wage and price decisions. Which of the followin best explains the rational for these adjustments? O A. When hiring new engineers or business school graduates, firms do not consider the prevailing wage in the market for similarly educated workers. O B. Wage adjustments occur at different times for different firms throughout the year, much as the dates for firms' fiscal years vary throughout the year. O C. Indexing of wages to macroeconomic variables, such as the inflation rate, occurs frequently in wage setting arrangements of one year or less. O D. Bargaining among labor unions, where the wage set at one union is irrelevant at another due to membership turnover.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 29P: Predict how each of the following events will raise or lower the equilibrium wage and quantity of...

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