Wage and Price Stickiness Causes

question 56

Multiple Choice

Wage and price stickiness causes

• A) changes in aggregate demand to have no short-run effects on real GDP.
• B) changes in aggregate demand to have long-run effects on real GDP.
• C) changes in aggregate demand to have both short-run and long-run effects on real GDP.
• D) changes in aggregate demand to have short-run effects on real GDP.

---

Definitions:

Modern View

Contemporary perspectives or theories that reflect current thinking and advancements in various fields or societal beliefs.

Existential Import

The assumption that a statement implies the existence of the subject matter it discusses.

Enthymeme

A rhetorical argument where one premise is left unstated but is implied by the context.

Premise

A statement or idea that forms the basis for a logical conclusion, often serving as the starting point of an argument.