In the Long Run in the Model with Keynesian Sticky

question 48

Multiple Choice

In the long run in the model with Keynesian sticky wages and prices

• A)the representative consumer is working too much.
• B)the First Welfare Theorem holds.
• C)the First Welfare Theorem does not hold.
• D)the representative consumer is working too little.
• E)the representative firm is hiring too much labour.

Understand the concepts of absolute and comparative advantage in international trade.

Analyze the effects of trade on consumer and producer surplus in different markets.

Determine the conditions under which countries will engage in trade.

Calculate opportunity costs and understand their role in trade decisions.

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Definitions:

Higher Income

Refers to a comparatively greater level of earnings or revenue, typically above the average for a certain geography or population.

Growth Hormones

Naturally occurring substances in the body that stimulate growth, cell reproduction, and cell regeneration.

Ableism

Is prejudice and discrimination against people who have disabilities.

Ableism

Discrimination or social prejudice against people with disabilities.