Keynes Assumed That Wages and Prices Were Slow to Adjust

question 23

Multiple Choice

Keynes assumed that wages and prices were slow to adjust in order to explain

• A)persistently high unemployment.
• B)high inflation.
• C)the high level of interest rates.
• D)why inflation fell in recessions.

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Definitions:

Industrial Workers

Individuals employed in sectors involving manufacturing, construction, and other forms of physical labor or production, often engaged in producing goods.

Craft Unionism

A labor movement approach focusing on organizing workers from the same craft or trade into a single union to negotiate for better conditions and wages.

Labor Party

A political party that represents the interests of the working class and supports labor unions, advocating for policies beneficial to workers and trade unions.

AFL Unions

Organizations affiliated with the American Federation of Labor, representing a coalition of trade unions.