According to the Keynesian fixed wage theory,real wages should be
A)positively correlated with income.
B)not correlated with income.
C)fixed.
D)negatively correlated with income.

Question

Quizplus · Accepted Answer

According to Keynesian fixed wage theory, real wages are positively correlated with income because as income increases, demand for goods and services increases, leading to higher employment and potentially higher wages.

According to the Keynesian Fixed Wage Theory,real Wages Should Be