Keynes Argued That Prices and Wages Were Likely to Be

question 32

Multiple Choice

Keynes argued that prices and wages were likely to be inflexible during a recession because:

• A)unemployment would be high and firms would have little spare capacity.
• B)unemployment would be low and firms would have little spare capacity.
• C)unemployment would be high and firms would have substantial spare capacity.
• D)unemployment would be low and firms would have substantial spare capacity.
• E)unemployment and inflation would be high.

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Definitions:

Case Studies

An in-depth investigation of a single individual, group, or event to explore the dynamics of its functioning.

Single-subject Experiments

Research design in which interventions or treatments are applied to a single participant to observe the effects over time.

Correlational Study

A research approach that seeks to find out if there is a relationship between two or more variables through statistical analysis, without establishing a cause-and-effect link.

Causation

The relationship between cause and effect, where one event (the cause) is responsible for the occurrence of another event (the effect).