Multiple Choice
Pigou's explanation of the existence of unemployment required
A) wage "stickiness" or slowness of wages to adjust to changes in market conditions.
B) fixed goods price or slowness of prices to adjust to changes in market conditions.
C) Churchill's introduction of unemployment compensation.
D) all of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q10: With a fixed nominal wage the SAS
Q11: With the nominal wage rate given,an increase
Q12: A fall in the price level causes<br>A)the
Q13: If firms hire workers until the real
Q14: The Pigou effect might be ineffective in
Q16: An increase in the nominal money supply
Q17: The 1933 real GDP per person had
Q18: Consider an initial IS-LM equilibrium point which
Q19: The LM curve will shift to the<br>A)left
Q20: If the interest responsiveness of business firms