Which One of the Following Describes Keynesians' Rationale for the Positively

question 72

Multiple Choice

Which one of the following describes Keynesians' rationale for the positively sloped SRAS curve?

• A)Nominal wages are fixed for the term of labour contracts,but price level changes,leading to a change in real wages and output.
• B)Demand for labour increases as prices increase and therefore profits increase.
• C)Workers prefer longer term contracts because of job security.
• D)There is misperception about the relative price levels.

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Definitions:

Theory Z

A management philosophy that integrates Japanese and American business practices, emphasizing employee participation, job security, and company loyalty.