AP Macroeconomics

study guides for every class

that actually explain what's on your next test

Sticky wages

from class:

AP Macroeconomics

Definition

Sticky wages refer to the phenomenon where wages are slow to adjust in response to changes in economic conditions, such as inflation or changes in the demand for labor. This can lead to a situation where nominal wages remain constant even though there may be changes in the real wage rate.

© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.