According to Samuelson and Solow, When Aggregate Demand Is High

question 142

Multiple Choice

According to Samuelson and Solow, when aggregate demand is high, how are unemployment, wages, and prices affected?

• A) Unemployment is low, so there is upward pressure on wages and prices.
• B) Unemployment is low, so there is downward pressure on wages and prices.
• C) Unemployment is high, so there is upward pressure on wages and prices.
• D) Unemployment is high, so there is downward pressure on wages and prices.

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Definitions:

Unconscious Conflicts

Deep-seated inner dilemmas that reside outside conscious awareness, often originating from childhood experiences and influencing behavior and emotions.

Self-Esteem

The relative balance of positive and negative judgments about oneself.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud focusing on unconscious motivations and conflicts.

Humanist

A person who emphasizes the value and agency of human beings, individually and collectively, often considering human needs and values as paramount.