Samuelson and Solow Argued That When Unemployment Is High

question 29

Multiple Choice

Samuelson and Solow argued that when unemployment is high,

• A)aggregate demand is high,which puts upward pressure on wages and prices.
• B)aggregate demand is high,which puts downward pressure on wages and prices.
• C)aggregate demand is low,which puts upward pressure on wages and prices.
• D)aggregate demand is low,which puts downward pressure on wages and prices.

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Definitions:

Private Property

The right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property.

Economically Most Efficient

The state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Labor and Capital

The primary factors of production, where labor refers to human work effort and capital to tools, equipment, and buildings used in production.

Government Subsidized Property Insurance

Insurance programs supported by the government to make coverage available and affordable, often in high-risk areas.