What does the relative-wage explanation for downwardly sticky wages emphasise?

1. A Option A: Unspoken agreements between workers and firms that firms will not cut wages
2. B Option B: 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
3. C Option C: Employment contracts that stipulate workers’ wages usually for a period of one to three years
4. D Option D: The incentive that firms may have to hold wages above the market clearing rate

Answer checked 11 October 2026 · How we write and check questions