Multiple Choice
The Keynesian sticky-wage theory states that in the short run:
A) wages do not adjust to changes in prices; therefore, real wages change and suppliers adjust their output levels
B) wages adjust to changes in prices; therefore, real wages are unchanged and suppliers do not adjust their output levels
C) wages adjust instantaneously to changes in prices
D) none of the above is an implication of the Keynesian sticky-wage theory
Correct Answer:
Verified
Correct Answer:
Verified
Q49: Which of the following explanations for the
Q50: Explain why the short-run aggregate supply curve
Q51: Deteriorating economic conditions could be due to:<br>A)increases
Q52: An increase in aggregate supply will:<br>A)reduce both
Q53: The downward slope of the aggregate-demand curve
Q55: A decrease in aggregate expenditure shifts the
Q56: Mundell-Fleming's effect implies that a currency depreciation:<br>A)increases
Q57: Most economists believe that classical economic theory
Q58: In a recession, real GDP falls and:<br>A)unemployment
Q59: When factors (other than price level) that