Which Explanation for Persistent Unemployment Used by the Original Keynesian

question 137

Multiple Choice

Which explanation for persistent unemployment used by the original Keynesian model is no longer needed in the new Keynesian model?

• A)shifting IS curve
• B)a fixed nominal wage
• C)aggregate supply curve is a function of the nominal wage
• D)rigid wages and prices

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Definitions:

Capital Leases

Leasing agreements classified as purchases of assets for accounting purposes, due to their terms transferring substantial ownership rights to the lessee.

Sales-Type Leases

Leases where the lessor recognizes immediate profit on the transaction, similar to a sale, typically in equipment or vehicle leasing.

Direct-Financing Leases

Direct-Financing Leases are lease agreements where the lessor essentially acts as a financier, purchasing an asset and leasing it to the lessee, without assuming risk of ownership.

Capital Lease

A lease classified as a financial transaction where the lessee effectively buys an asset and finances it over the lease term.