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:

Normative Social Influence

The force exerted by others that prompts us to align our actions to be cherished and welcomed by them.

Asch's Line-Judgment Experiment

A study on conformity that demonstrated the power of social pressure on individuals to conform to an incorrect majority view.

Deindividuation

A psychological state where an individual loses self-awareness and self-restraint, often occurring within group settings.

Inhibitions

Mental or psychological processes that restrain or hold back one's actions, emotions, or thoughts.