Answer:
The answers are:
D) nominal wages are inflexible downwards.
D) reduce their workforce.
Explanation:
Prices tend to be sticky because the sellers may be willing to increase their prices in response to economic changes but they will not be happy or willing to lower their prices, at least not fast. The same happens to wages, imagine you work for a company. Will you accept a wage reduction without complaining about it or even trying to stop it?
If we consider nominal wages to be inflexible downwards, when the demand for labor decreases, companies will most likely reduce their total workforce. Firing a few employees is usually much easier to deal with than lowering the wages of the total workforce of a company.