Samuelson and Solow Reasoned That When Aggregate Demand Was Low,unemployment

question 50

Multiple Choice

Samuelson and Solow reasoned that when aggregate demand was low,unemployment was

• A)high,so there was upward pressure on wages and prices.
• B)high,so there was downward pressure on wages and prices.
• C)low,so there was upward pressure on wages and prices.
• D)low,so there was downward pressure on wages and prices.

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Definitions:

Break-even Point

The level of production or volume of sales at which total costs and total revenue are equal.

Sales Increase

A rise in the volume or value of products or services sold by a business over a specific period.

Margin of Safety

The difference between actual or projected sales and the sales break-even point, indicating risk level.

Dollars

The basic monetary unit used in the United States, symbolized as $, representing the currency.