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

question 73

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 demand curve.
• E) small changes in goods market prices and a horizontal aggregate demand curve.

---

Definitions:

Lipid Bilayer

A thin polar membrane made of two layers of lipid molecules found in cell membranes, crucial for maintaining the structure and function of cells.

Polar Molecules

Molecules that have distinct regions of positive and negative charge, leading to an uneven distribution of electrons across the molecule.

Proteolytic Enzyme

An enzyme that breaks down proteins into smaller peptides or amino acids by hydrolysis of the peptide bonds.

Facilitated Diffusion

A process of passive transport, mediated by carrier proteins, allowing molecules to cross cell membranes along a concentration gradient.