According to the Keynesian Model

question 218

Multiple Choice

According to the Keynesian model,

• A)wages are flexible because workers wouldn't otherwise be able to keep their jobs.
• B)the price level is somewhat fixed due to social forces, which keeps an economy from remaining at an equilibrium level of unemployment.
• C)prices are subject to significant fluctuations as demand and supply change.
• D)the government puts price controls on the economy, keeping the price level fixed.

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Definitions:

Stock Dividend

A distribution of additional shares of a company's stock to its shareholders, usually in proportion to their existing holdings, instead of paying a cash dividend.

Small Stock Dividend

A dividend paid in the form of additional stock shares rather than cash, usually less than 20-25% of the existing shares.

Common Stock Dividends Distributable

An amount declared by a company’s board of directors to be distributed to common stockholders, recorded as a liability until paid.

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares.