Samuelson and Solow Argued That When Unemployment Is High

question 29

Multiple Choice

Samuelson and Solow argued that when unemployment is high,

• A)aggregate demand is high,which puts upward pressure on wages and prices.
• B)aggregate demand is high,which puts downward pressure on wages and prices.
• C)aggregate demand is low,which puts upward pressure on wages and prices.
• D)aggregate demand is low,which puts downward pressure on wages and prices.

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Definitions:

Special Sensor

A device designed to detect, measure, and respond to specific inputs from the physical environment, such as light, heat, motion, moisture, pressure, or any one of a great number of other environmental phenomena.

Transfer Price

The cost incurred for products or services exchanged between the divisions or departments within the same organization.

Minimal Acceptable

The lowest level or standard considered satisfactory or acceptable for a specific purpose or requirement.

Variable Cost

Costs that change in proportion to the level of production or business activity, such as materials and labor.