If the Price Level Falls as Real GDP Decreases, the Multiplier

question 26

True/False

If the price level falls as real GDP decreases, the multiplier effects of any given change in aggregate expenditures are smaller than they would be if the price level remained constant.

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Definitions:

Taft-Hartley Act

A federal law enacted in 1947 that restricts the activities and power of labor unions, also known as the Labor Management Relations Act.

Wagner Act

Also known as the National Labor Relations Act of 1935, it is a foundational statute of United States labor law which guarantees basic rights of private sector employees to organize into trade unions, engage in collective bargaining, and take collective action such as strikes.

Right-To-Work Laws

State laws that prohibit labor-management agreements requiring union membership as a condition of getting or keeping a job.

Constructive Discharge

Discriminatory action whereby an employee is demoted to a job with less pay, authority, or poorer working conditions than the job that person previously held or is subjected to supervisory harassment.