According to Keynesian Theory, SRAS Curve Is Positively Sloped, Because

question 23

Multiple Choice

According to Keynesian theory, SRAS curve is positively sloped, because

• A) employers and employees fail to predict prices correctly.
• B) employers and employees have misperception about the change in relative price level.
• C) labour contracts are signed for a period in which labour market conditions are not known.
• D) wages are flexible, but prices are not.

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Definitions:

Social Anxiety

The fear of social situations that involve interaction with other people, leading to feelings of self-consciousness and judgment.

Neurochemical Imbalance

A state where there is an abnormal level of neurotransmitters in the brain, which can affect mood, behavior, and cognitive functions.

Unconscious Conflicts

Psychological struggles often stemming from repressed childhood experiences or intrinsic desires that are not conscious.

Negative Automatic Style

A cognitive bias where an individual routinely interprets situations in a negative light.