Keynesians Explain the Procyclical Behaviour of Average Labour Productivity by Introducing

question 54

Multiple Choice

Keynesians explain the procyclical behaviour of average labour productivity by introducing the concept of

• A)menu costs.
• B)sticky prices.
• C)sticky wages.
• D)labour hoarding.

---

Definitions:

Cram

The practice of intensely absorbing a large amount of information in a short period of time, often used in the context of studying.

Sequence

A specific order in which related events, movements, or things follow each other.

Prototype Model

A model emphasizing that when people evaluate whether a given item reflects a certain concept, they compare the item with the most typical item(s) in that category and look for a “family resemblance” with that item’s properties.

Availability Heuristic

A prediction about the probability of an event based on the ease of recalling or imagining similar events.