"If There Is Unemployment,the Average Wage Rate Will Decline as the Unemployed

question 76

Multiple Choice

"If there is unemployment,the average wage rate will decline as the unemployed workers choose lower wages rather than going without a job.The demand curve for labor slopes downward and to the right so that more workers would be hired at the lower wage rate,restoring full employment." According to the Keynesian view,this quote is

• A)incorrect because widespread unemployment would cause wages to rise,not decline.
• B)incorrect because the demand for labor,other things constant,will not be negatively related to wages.
• C)incorrect because wages and prices tend to be highly inflexible downward.
• D)essentially correct.

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Definitions:

Aromatherapy

The use of essential oils extracted from plants for therapeutic purposes, aimed at improving physical, emotional, and mental well-being.

Specific Conditions

Distinct or particular diseases, disorders, or situations affecting an individual’s health.

Lavender

A fragrant plant known for its purple flowers, often used in aromatherapy for its calming and relaxing properties.

Neroli

An essential oil made from the blossom of the bitter orange tree, used for its fragrance and in aromatherapy.