In the Keynesian Model, Prices and Nominal Wages Are _____

question 264

Multiple Choice

In the Keynesian model, prices and nominal wages are _____, the short-run aggregate supply curve is upward sloping, and as a result, an increase in the money supply leads to _____ in the aggregate price level.

• A) sticky; a less than proportional decrease
• B) flexible; a proportional decrease
• C) sticky; a less than proportional increase
• D) flexible; a proportional increase

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue; the ratio of net sales to average assets.

Invested Assets

Assets acquired or invested in to generate revenue, growth, and profit for the business.

Financial Data

Quantitative information concerning the financial health, performance, and condition of a business or individual.

Indirect Expenses

Expenses that cannot be directly traced to a specific cost object, such as rent, utilities, and administrative salaries.