Keynes Argued That Because of Sticky Prices and Wages

question 57

Multiple Choice

Keynes argued that because of sticky prices and wages

• A) the short-run aggregate supply curve could be horizontal.
• B) the short-run aggregate supply curve is probably vertical.
• C) the long-run aggregate supply curve slopes downward.
• D) the aggregate demand curve is vertical.

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Definitions:

Cosmopolitanism

An ideology that all human beings belong to a single community, based on a shared morality, regardless of nationality, ethnicity, or local affiliations.

Homiphily

The tendency of individuals to associate and bond with others who share similar interests, values, or backgrounds.

Compatibility

The ability of two or more systems, devices, or components to work together without conflict, enhancing functionality or convenience.

Complexity

The state or quality of being intricate or complicated, often referring to systems or problems that have multiple interconnected parts.