Sticky prices and wages that require time for the economy to reach a new equilibrium is a characteristic of New economics, whereas rapid adjustments is a characteristic of New economics.

The economic models that assume markets are monopolistically competitive and adjustments to equilibrium take time due to sticky wages and prices is known asMultiple choice question.monetarism.the New Classical Model.the New Keynesian Model.Keynesian economics.

in short explain sticky wages

Select all correct statements below.Note: This is a multiple-answer question; thus, more than one option may be correct.a.To model economic development, we assume sticky prices.b.We assume prices are flexible in the long run.c.In the short run, prices adjust to ensure market clearing.d.To model fluctuations in output, we assume sticky prices

During a recession the demand for labor falls. The sticky wages theory suggestsMultiple choice question.employers will not adjust their demand for labor.employers will hire more workers.unemployment will be greater than if the wage rate adjusted downward.unemployment will be less than if the wage rate adjusted downward.

Mention and explain 10 reasons why wages are sticky