What Was the Behavior of Nominal Wages in the 1930s

question 38

Multiple Choice

What was the behavior of nominal wages in the 1930s?

• A)They remained virtually constant,justifying the assumption of nominal wage rigidity.
• B)They fell tremendously,just as Classical macroeconomics predicts.
• C)They fell a bit at first,but then rose even as output remained far below natural real GDP.
• D)They rose throughout the decade,just as Keynesian macroeconomics predicts.

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Definitions:

Collective Societies

Societies characterized by a strong sense of interdependence and priority of group goals over individual goals, often emphasizing relationships and communal responsibility.

Egalitarian Societies

Societies characterized by equality, where rights and opportunities are equally distributed among all members, irrespective of their background.

Majority Groups

Represents the larger segment of a population or community, holding dominant power or status compared to minority groups.

Prejudice

Unfavourable attitude towards a social group and its members.