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:

Gum Chewing

The act of chewing gum, which can be studied in psychology for its effects on concentration, stress reduction, or habit formation.

Candy Bar

A bar-shaped confectionery that typically includes ingredients such as chocolate, caramel, nuts, and nougat.

Grocery Store

A retail store that primarily sells food, both fresh and packaged, along with various household goods.

Crying

The shedding of tears in response to an emotional state, reflecting a range of feelings from deep sorrow to extreme joy.