According to Gordon,a Major Problem with Keynes' "Rigid Nominal Wage

question 43

Multiple Choice

According to Gordon,a major problem with Keynes' "rigid nominal wage" theory of the business cycle is

• A)a horizontal LM curve.
• B)it is not a market clearing theory.
• C)falling real wages are not countercyclical with business activity or Y.
• D)None of the above.

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Definitions:

Psychic Energy

A concept in psychoanalytic theory referring to the energy of the mind's workings, driving thoughts, emotions, and behaviors.

Oedipus Complex

A Freudian concept involving a child's unconscious sexual desire for the parent of the opposite sex and jealousy towards the same-sex parent.

Freud

Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Castration Anxiety

A concept in psychoanalytic theory referring to a child's fear of losing their genitalia, symbolizing a fear of losing power or being diminished.