The Pre-Keynesian or Classical Economic Theory Viewed the Long-Run Aggregate

question 61

Multiple Choice

The pre-Keynesian or classical economic theory viewed the long-run aggregate supply curve for the economy to be:

• A) horizontal at the full-employment level of real GDP.
• B) positively sloped at the full-employment level of real GDP.
• C) vertical at the full-employment level of real GDP.
• D) backward bending at the full-employment level of real GDP.

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Definitions:

NLRA

The National Labor Relations Act, which is legislation enacted to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices.

Bargain

An agreement between two or more parties on the terms of a deal, typically involving the exchange of goods, services, or financial assets.

Economic Pressure

The coercive use of financial resources to influence or compel behavior, often in the context of negotiation or conflict.

Union Shop Contract

An employment agreement requiring non-union workers to join the union within a certain period of hiring, to remain employed.