What Was the Behavior of Nominal Wages in the 1930s

question 38

Multiple Choice

What was the behavior of nominal wages in the 1930s?

• A)They remained virtually constant,justifying the assumption of nominal wage rigidity.
• B)They fell tremendously,just as Classical macroeconomics predicts.
• C)They fell a bit at first,but then rose even as output remained far below natural real GDP.
• D)They rose throughout the decade,just as Keynesian macroeconomics predicts.

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Definitions:

Reductive Amination

A reaction that involves the conversion of a carbonyl group to an amine via the addition of a nitrogen source and a reducing agent.

L-Proline

An essential amino acid that is important for the synthesis of proteins, playing a crucial role in maintaining muscle and connective tissue health.

Benzyl Ester

An ester compound where the alcohol part of the ester is derived from benzyl alcohol, often used in organic synthesis as protective groups or intermediates.

Protecting Group

A temporary functional group added to a molecule to protect a reactive site from undesirable reactions during synthesis.