Most Economists Think That the Keynesian Position Is That

question 51

Multiple Choice

Most economists think that the Keynesian position is that

• A) the wage rate will never fall and the price level will never adjust downward if the economy is in a recessionary gap.
• B) the time required before wages and prices adjust downward is short enough for the economy to be called self-regulating.
• C) the time required before wages and prices adjust downward is long enough for the economy to exist in a recessionary gap for a long time.
• D) the time required before wages and prices adjust downward if the economy is in a recessionary gap is rather long,but short enough for the economy to be considered self-regulating.

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Definitions:

Decreased

Refers to a reduction or diminution in size, quantity, or intensity.

Basic Trust

A concept in psychology, originally coined by Erik Erikson, that suggests an essential trustfulness of others as well as a fundamental sense of one's own trustworthiness, developed in early childhood.

Basic Mistrust

A fundamental sense of distrust or insecurity, often stemming from early life experiences.

Erikson's Stages

A theory of psychosocial development outlining eight stages from infancy to adulthood, each characterized by a specific crisis and its resolution.