If wages are sticky downward, then a decrease in the demand for labor
A) will bring the economy back to full employment.
B) will cause more unemployment in the short run.
C) will cause an increase in production in the short run.
D) will cause wages to drop in the short run.
Correct Answer:
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Q24: Q25: According to classical economists, an increase in Q26: According to the classical economists, the economy: Q27: Of the economists listed below, who is Q28: The wage- price spiral occurs when: Q30: Which of the following will cause investments Q31: In order to prevent a wage- price Q32: Fiscal policy affects the real interest rate Q33: Suppose that potential output is $5 trillion Q34: Recall Application 1, "Avoiding a Liquidity Trap,"
A)
A) the
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