In a flexible wage model
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How does the flexible wage differ from a sticky wage?
The classical model assumes that wages and prices(A) are flexible downwards but not flexible upwards.(B) are always completely flexible.(C) are flexible in the long run but not in the short run.(D) are flexible upwards but not flexible downwards.
The classical model assumes that wages and prices
A. are flexible downwards but not flexible upwards.
B. are always completely flexible.
C. are flexible in the long run but not in the short run.
D. are flexible upwards but not flexible downwards.