how-do-union-wages-contribute-to-fixed-wage-levels-during-economic-fluctuations-

Question

How do union wages contribute to fixed wage levels during economic fluctuations according to the sticky wage theory?

Accepted Answer

Union contracts set wages for several years, preventing quick adjustments.

Answer

Union wages are irrelevant to economic fluctuations.

Answer

Union wages decrease during economic booms to maintain employment.

Answer

Union wages fluctuate rapidly with economic conditions.