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:

Tariff Rates

Taxes imposed by a government on goods and services imported or sometimes exported, affecting the price and availability of those items.

Slavery

An arrangement where people are possessed by others, stripped of their autonomy, and coerced into working or providing services without any form of payment.

Spoils System

A practice where political party leaders award government jobs to loyal party members as a reward for their support, regardless of their qualifications.

Political Violence

Political violence refers to violent acts committed with the aim to achieve political objectives, which can include terrorism, civil war, targeted assassinations, and other forms of violence used by both state and non-state actors.