The Keynesian AS-Curve Differs from the Classical AS-Curve, Since Keynes

question 25

Multiple Choice

The Keynesian AS-curve differs from the classical AS-curve, since Keynes

• A)thought that labor markets worked smoothly to always establish full employment
• B) thought that nominal wages were rigid even when there was unemployment
• C) thought that nominal wages were flexible even when there was unemployment
• D)described the AS-curve as completely vertical
• E)assumed that firms tried to exploit the work force by paying them substandard wages

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Definitions:

Tenants In Common

Owners of an undivided interest in property, with each owner’s rights going to his or her heirs upon death rather than to the surviving co-tenants.

Interstate Highway

A network of controlled-access highways that forms part of the National Highway System in the United States, designed for high-speed vehicular traffic.

Farm-To-Market Road

A state or county road that connects rural or agricultural areas to market towns or cities.