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Keynes Believed That Wages and Prices Were Sticky

Question 110

Multiple Choice

Keynes believed that wages and prices were sticky. Therefore, a rightward shift of the Jaggregate demand curve would cause


A) a decrease in the level of income.
B) an increase in the unemployment level.
C) a change in the long-run aggregate supply curve.
D) an increase in employment, production, and income.

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