According to Samuelson and Solow, When Aggregate Demand Is Low

question 17

Multiple Choice

According to Samuelson and Solow, when aggregate demand is low, how are unemployment, wages, and prices affected?

• A) Unemployment is high, so there is upward pressure on wages and prices.
• B) Unemployment is high, so there is downward pressure on wages and prices.
• C) Unemployment is low, so there is upward pressure on wages and prices.
• D) Unemployment is low, so there is downward pressure on wages and prices.

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