Which of the following statements about the behaviour of the real wages in the business cycles is true?
A) The sticky wage theory can produce procyclical real wages.
B) The sticky wage theory along with the price rigidity theory can explain the fact that the real wages are procyclical.
C) The sticky wage theory along with the price rigidity theory can explain the fact that the real wages are countercyclical.
D) The sticky wage theory can explain the fact that the real wages are acyclical.
Correct Answer:
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Q2: The main difference between classical economists and
Q3: The crowing-out effect occurs because of
A)higher prices
Q5: In the Keynesian model of the business
Q6: In the Keynesian model,the economy can be
Q7: In the Keynesian model,wages and prices are
A)sticky
Q8: Keynesian business cycle theory cannot account for
Q9: Unanticipated increase in the government expenditures would
A)shift
Q10: The crowding-out effect refers to a situation
Q11: In the Keynesian model,
A)the short-run aggregate supply
Q14: Keynesians are skeptical of the classical theory
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