That Wage and Price Rigidities Cause Changes in Aggregate Demand

question 31

Multiple Choice

That wage and price rigidities cause changes in aggregate demand to lead to changes in real output is a concept associated with

• A) classical economists.
• B) new classical macroeconomists.
• C) real business cycle theorists.
• D) new and traditional Keynesians.
• E) supply-side economists.

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Definitions:

Zygomatic Arch

The bone structure that forms the prominence of the cheek, extending from the zygomatic process of the temporal bone to the zygomatic bone.

Facial Nerve

The seventh cranial nerve that controls the muscles of facial expression, among other functions.

Masseter Muscle

A facial muscle that plays a major role in the chewing of solid foods, connecting the lower jawbone to the cheekbone.

Orbicularis Oris

A complex of muscles in the face that encircles the mouth, controlling movements like closing or puckering the lips.