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Which One of the Following Describes Keynesians' Rationale for the Positively

Question 49

Multiple Choice

Which one of the following describes Keynesians' rationale for the positively sloped SRAS?


A) Nominal wages are fixed for the term of labour contracts, but price level changes, leading to a change in real wages and output.
B) Demand for labour increases as prices and therefore profits increase.
C) Workers prefer longer term contracts because of job security.
D) There is misperception about the relative price levels.

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