If Keynes's Theory Is Correct,wage Rates May Be _______________ in a _____________

question 198

Multiple Choice

If Keynes's theory is correct,wage rates may be _______________ in a _____________ direction which means that the __________ curve will not shift to the __________ to remove the economy from a recessionary gap as it would in a self-regulating economy.

• A) inflexible; downward; AD; right
• B) flexible; upward; SRAS; right
• C) flexible; downward; AD; right
• D) inflexible; upward; SRAS; left
• E) inflexible; downward; SRAS; right

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Definitions:

Bonus Marchers

A group of World War I veterans who marched to Washington, D.C., in 1932 to demand early payment of a promised bonus, leading to a confrontation with the military.

Violence Avoidance

Strategies and behaviors aimed at preventing or minimizing physical conflict and aggression.

Negotiate Withdrawal

The process of formally discussing and arranging terms to officially exit an agreement, organization, or location.

Franklin Delano Roosevelt

The 32nd President of the United States (1933–1945) who led the country during the Great Depression and World War II, known for his New Deal programs.