Traditional Keynesians Argued That When Wages Are Rigid, Changes in Output

question 89

Multiple Choice

Traditional Keynesians argued that when wages are rigid, changes in output result in:

• A)small changes in goods market prices and a flat aggregate supply curve.
• B)large changes in goods market prices and a flat aggregate supply curve.
• C)large changes in goods market prices and a steep aggregate supply curve.
• D)small changes in goods market prices and a steep aggregate supply curve.
• E)small changes in goods market prices and a horizontal aggregate demand curve.

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