Answer:
The three theories are all True.
Explanation:
Solution
(1) True
The sticky wage theory: As stated by the sticky wage theory the reimburse of employees tends to have a steady response to the changes in the performance of the economy or the organization.
Precisely wages are frequently said to be sticky- down, this means that they can go up easily but come down only with difficulty.
Without stickiness, wages would always adjust in more or less real-time with the market and bring about constant economic equilibrium.
(2) True
Sticky price theory: The logic behind sticky price theory is the same as sticky wage theory but with in terms to the price of goods.
Menu costs produce stickiness in prices because of the cost and time considered to change the price, such as costs of printing new sales materials and distributing catalogs and the time needed for a retailer to change price tags.
Businesses will at the time being minimize the quantity supplied until they can get prices unstuck.
(3) True
Misperception theory : This theory presents changes in the total price level at the moment mislead the suppliers about what is happening in the markets in which they sell their goods. they make an inaccurate assumption that their relative prices have also declined.
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