Traditional Keynesians Argued That When Wages Are Rigid, Changes in Output

question 89

Multiple Choice

Traditional Keynesians argued that when wages are rigid, changes in output result in:

• A)small changes in goods market prices and a flat aggregate supply curve.
• B)large changes in goods market prices and a flat aggregate supply curve.
• C)large changes in goods market prices and a steep aggregate supply curve.
• D)small changes in goods market prices and a steep aggregate supply curve.
• E)small changes in goods market prices and a horizontal aggregate demand curve.

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Definitions:

Consumer Incomes

The total earnings received by consumers, including wages, salaries, benefits, and other income sources, which affect their purchasing power.

Farm Income

The earnings from agricultural operations, including the sale of crops, livestock, and other farm-related sources.

Farm Household

A living arrangement where families live and work primarily on a farm producing agricultural goods.

Demand For Agricultural Products

The consumer need or desire for products originating from farming and agriculture.