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:

Citric Acid Cycle

Cyclic pathway that harvests energy from acetyl–CoA; part of aerobic respiration. Also called the Krebs cycle.

Glycolysis

The metabolic pathway that converts glucose into pyruvate, generating ATP and NADH without the need for oxygen.

NADH

A coenzyme found in all living cells that is produced during glycolysis and used as an electron carrier in the process of cellular respiration.

FADH2

A redox cofactor involved in cellular respiration, acting as a carrier of electrons to the electron transport chain.