Keynes Argued That Prices and Wages Were Likely to Be

question 66

Multiple Choice

Keynes argued that prices and wages were likely to be inflexible during a recession because:

• A) unemployment would be high and firms would have little spare capacity.
• B) unemployment would be low and firms would have little spare capacity.
• C) unemployment would be high and firms would have substantial spare capacity.
• D) unemployment would be low and firms would have substantial spare capacity.

---

Definitions:

Reticular Formation

A network of neurons located in the brainstem that is involved in consciousness, sleep-wake cycles, and filtering incoming stimuli to focus attention.

Sleep and Wake Cycles

The natural, biological rhythms that regulate our pattern of sleeping and waking, influenced by internal biological clocks and external factors.

Language Perception

The cognitive process by which spoken or written language is understood, interpreted, and analyzed.

Initiate Movement

Initiate Movement pertains to the neurological process of starting any voluntary movement, involving the planning and execution phases in the brain.