Sticky Wage Theory Investopedia Sharper Insight.
29/4/2018· The sticky wage theory hypothesizes that pay of employees tends to have a slow response to the changes in the performance of a company or of the economy.
Find all information about the sticky price model of exchage rate. The sticky price model generates an upward sloping short run aggregate supply curve. This is because firms are rigid in changing prices in response to changes in the economy.
According to the sticky-wage model, workers and employers make an explicit or implicit agreement that covers: A) nominal wages. aggregate supply curve) to illustrate graphically the short-run and long-run effects on price and output of a reduction in18.