Which of the Following Pairs Helps Explain Why Self-Correction from a Decline

question 109

Multiple Choice

Which of the following pairs helps explain why self-correction from a decline in aggregate demand in the economy may be slow rather than rapid?

• A) theory of compensation wage differentials; theory of derived demand for labor
• B) efficiency wage theory; minimum wage laws
• C) insider-outsider theory; principle-agent problem
• D) externalities; efficiency wage theory

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Definitions:

Organisms

Living entities that can function independently, ranging from microscopic bacteria to complex animals and plants.

Aristotle

An ancient Greek philosopher and polymath, whose writings covered diverse fields such as metaphysics, biology, ethics, and politics, significantly influencing Western intellectual history.

Phylogeny

The complete evolutionary history of a group of organisms.

Evolutionary History

Describes the processes and pathways through which species have changed and diversified over time from common ancestors.