The inability of wages to adjust to market conditions is called ________

If a 1 percent increase in the price of X increases the quantity demanded of Y by 2 percent, then X and Y are

A) complements and the cross elasticity of demand equals 2. B) substitutes and the cross elasticity of demand equals 1/2. C) substitutes and the cross elasticity of demand equals 2. D) complements and the income elasticity of demand equals 2. E) normal goods and the income elasticity of demand of each equals 2.

The efficiency wage model is an explanation of wage __________ and thus a support for the ____________________ view

A) flexibility; Keynesian B) flexibility; classical C) inflexibility; Keynesian D) inflexibility; classical