Suppose There Is Unemployment Because of Inadequate Aggregate Demand

question 54

Multiple Choice

Suppose there is unemployment because of inadequate aggregate demand. If wage rates are "sticky:"

• A) increases in aggregate supply will cause the economy to return to full employment.
• B) decreases in aggregate supply will cause the economy to return to full employment
• C) increases in aggregate demand will cause the economy to return to full employment.
• D) cyclical unemployment may persist for a long time.

---

Definitions:

Donald Meichenbaum

A psychologist renowned for his contributions to cognitive-behavior therapy, specifically in the development of cognitive behavioural modification techniques.

Theory And Treatment

A concept that encompasses the foundational ideas underlying the methods and strategies for addressing and managing diseases or disorders.

Moral Therapy Approach

A treatment philosophy from the 19th century focused on treating psychiatric patients with compassion and understanding, rather than with physical restraint and coercion.

Mentally Ill

Referring to individuals who suffer from mental disorders that affect their cognition, behavior, and abilities to function in daily life.